Christmas Tree Coffee Cake

In large mixing bowl throughly mix 2 cups flour, sugar, salt& dry yeast. Set aside. In small saucepan combine milk, water and butter. Heat to 130ºF (butter does not need to melt). Slowly add liquid to the above dry ingredients; beat for 2 minutes with electric mixer, scraping bowl occasionally. Add egg and 1 cup flour. Beat at high speed additional 2 minutes. Stir in enough remaining flour to make stiff dough (approx. 1 cup). Cover tightly. Refrigerate at least 2 hours or up to 3 days. When ready to make rolls, prepare filling. In large mixing bowl combine cream cheese, sugar, salt, nutmeg and vanilla. Beat just until well blended. Stir in drained pineapple. Grease 2 large cookie sheets. Divide dough in half; keep one half in refrigerator while working with other half. On lightly floured surface roll first dough half to an 11" x 10" rectangle. Spread with half of the cream cheese pineapple filling. Roll up on 11" side- pinch seams to seal. Cut into 1" slices and arrange in shape of Christmas tree on cookie sheet. Cover lightly with plastic wrap. Repeat with remaining dough and filling. Let arranged slices rise approximately 1 hour in draft free warm place. Preheat oven to 375ºF- Bake 15 minutes; cover with aluminum foil to prevent browning. Bake additional 5-10 minutes. Remove from oven and allow to cool. Place cherries, cut side down in center of each roll. Combine powdered sugar with milk and drizzle over the rolls.