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1. Add the first 9 ingredients to a 1-1/2- or 2-pound bread machine according to the manufacturer's directions. Select the dough cycle. When cycle is complete, remove dough from machine. Punch down. Cover and let rest for 10 minutes.
2. Divide the dough in half. On a lightly floured surface, roll each half into a 25-inch-long rope. Line up ropes 1 inch apart. Loosely twist the ropes together. Bring ends together to form a ring. Moisten ends; pinch together to seal ring. Transfer to a lightly greased large baking sheet. Cover and let rise in a warm place about 45 minutes or until nearly double. Combine egg yolk and 1 tablespoon water; brush over ring. Bake in a 350 degree F oven for 20 to 30 minutes or until golden brown. Remove from baking sheet; cool on a wire rack. Makes 16 servings.