Have the 1/2 cup water and milk at 110-115 degrees F. In a large mixing bowl, dissolve the yeast in the warm water. Add the warm milk, sugar, butter, vanilla, salt, nutmeg, and 3 cups of the flour. Beat until smooth. Add the 4 eggs, one at a time, beating the mixture well after each addition. Stir in the dried fruit and enough of the remaining flour to make a soft dough.

Turn out onto a floured surface and knead until smooth and elastic, about 6 to 8 minutes. Place in a greased bowl and turn over to grease the top. Cover with a damp towel or plastic wrap and let rise in a warm place until doubled in size (about 1 hour).

Punch the dough down and shape into 30 balls. Place on greased baking sheets. Using a sharp knife, cut a cross (or X) on the top of each roll. Cover again and let rise until doubled (about 30 minutes). Beat the water and egg yolk together and brush over the rolls. Bake at 375-degrees F. for 12 to 15 minutes. Cool on wire racks. Drizzle icing over the top of each roll following the lines of the cut cross.

ICING: Combine 1 cup confectioners' sugar, 4 teaspoons milk or cream, a dash of salt, and 1/4 teaspoon vanilla extract. Stir until smooth. Adjust sugar and milk to make a mixture which flows easily.