Stir together yeast, 1 cup warm water, and 2 tablespoons sugar in a 2-cup liquid measuring cup; let stand 5 minutes.
Stir together remaining 6 tablespoons sugar, flour, and next 3 ingredients in bowl of a heavy-duty electric stand mixer.
Add yeast mixture, and beat at medium speed with mixer, using dough hook attachment, 6 minutes.
Divide dough into 12 equal portions; shape into balls, and place on 2 lightly greased baking sheets (6 balls per baking sheet). Flatten to 4-inch-wide circles with hand; press thumb in center of each circle to make an indentation (about the size of a quarter). Spoon 1 tablespoon preserves in each indentation.
Cover and let stand in a warm place (85), free from drafts, 20 minutes (dough will not double in bulk).
Bake at 375 for 13 to 15 minutes or until golden brown. Cool on baking sheets on wire racks. Stir together powdered sugar and 1/3 cup water; drizzle evenly over breads.
