Warm milk to 110°F and add yeast with 1 tablespoon sugar. Let sit until foamy, about 5-10 minutes.
In a large bowl, combine flour, remaining sugar, and salt.
Add yeast mixture, eggs, vanilla, and melted butter to the dry ingredients.
Mix until a dough forms, then transfer to a floured surface.
Knead dough for 8-10 minutes until smooth and elastic.
Place in a greased bowl, cover, and let rise in a warm place for 1-1½ hours.
Prepare filling by mixing brown sugar with cinnamon.
Beat cream cheese with sugar until smooth for the cream cheese filling.
Punch down risen dough and roll into a 24x12 inch rectangle.
Spread cream cheese mixture over dough, leaving a 1-inch border.
Sprinkle cinnamon-sugar mixture over cream cheese.
Roll dough from long side to form a log.
Form into a ring, pinching seams to seal.
Place on a parchment-lined baking sheet, cover, and let rise for 30 minutes.
Preheat oven to 350°F.
Bake for 25-30 minutes until golden brown.
Cool completely.
Mix powdered sugar, milk, and vanilla to make icing.
Drizzle icing over cooled cake.
Immediately sprinkle with alternating sections of colored sugar.
Insert plastic baby from bottom of cake after cooling.(Optional)