In a large bowl, dissolve yeast in warm water. Add the milk, 1/4 cup sugar, 1/4 cup butter, egg, salt and 3-1/2 cups flour. Beat until smooth. Stir in enough remaining flour to form a soft dough.

Turn onto a floured surface; knead until smooth about 6-8 minutes. Place in a greased bowl. Turn once to grease bowl. Cover and let rise in a warm place until doubled, about 1 1/4 hours.

Press dough down. Turn onto a lightly floured surface; divide into 32 pieces. Flatten each into a 3-in. disk. Place about 1 teaspoon of preserves on the center of each piece; bring edges together and seal.

Place 16 dough balls in a greased 10-in. fluted tube pan. Brush with half of the remaining butter; sprinkle with 1 tablespoon sugar. Top with remaining balls, butter and sugar. Cover and let rise until doubled, about 35 minutes.

Bake at 350° for 25-30 minutes or until golden brown.

Place raspberries in a blender and blend until smooth. Run through a mesh strainer into a small saucepan to remove seeds. (optional) In saucepan whisk together the berries with sugar and cornstarch. Bring to a boil over medium-high heat and cook, stirring constantly, 1 to 2 minutes or until slightly thickened. Remove from heat and let cool.

Spoon over bread.