Warm the milk slightly, crumble the yeast into it, add a teaspoon of sugar, and let it proof for 10 minutes until foamy.
In a bowl, combine the flour, granulated sugar, vanilla sugar, and salt. Add the melted butter, eggs, and the proofed yeast mixture. Mix well, then start kneading the dough.
Knead into a smooth, elastic dough for about 10 minutes. If it's too sticky, add a little flour, but not too much, or it may dry out.
Cover the dough and let it rise in a warm place for 1 hour, until doubled in size. Meanwhile, chop the hard caramel pieces into pea-sized pieces.
Punch down the risen dough, then gently knead in the caramel pieces. Tip: If you want to preserve the caramel's crunchiness, hold back a few and sprinkle them on top at the end of shaping.
Shape the dough into the classic stollen form: roll out the dough, then fold it lengthwise so that a small bulge remains in the middle. Place on a baking sheet lined with parchment paper and let rise for another 30 minutes.
Preheat the oven to 350°F (180°C). Bake for 40–45 minutes, until golden brown. Tip: If it browns too quickly, loosely cover it with aluminum foil.
Brush the freshly baked stollen with butter, then sprinkle with powdered sugar. It is important to let it cool completely, so that the caramel solidifies and remains crunchy.
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