Combine 1/2 cup water, milk, and butter in a saucepan; heat, stirring constantly, until butter melts. Cool to 120 to 13
Combine 3 1/2 cups flour and next 5 ingredients in a bowl. Gradually add milk mixture to flour mixture, beating at high speed with an electric mixer until blended.
Add 1 egg, and beat 2 minutes at medium speed. Gradually stir in enough of remaining flour to make a soft dough.
Turn dough onto a floured surface, and knead until smooth and elastic (about 10 minutes).
Place in a well-greased bowl, turning to grease top. Cover and let rise in a warm place (85), free from drafts, 1 hour or until doubled in bulk.
Punch dough down; turn out onto a lightly floured surface, and knead lightly 4 or 5 times. Divide dough in half. Divide each half into thirds.
Roll 3 portions into 20-inch-long ropes, and place them side by side on a greased baking sheet; braid ropes, and shape into a ring. Pinch ends together to seal. Repeat procedure with remaining dough. Cover and let rise in a warm place (85), free from drafts, 30 minutes. Lightly beat remaining egg, and brush over braids.
Bake at 350 for 20 to 25 minutes or until wreaths sound hollow when tapped. Cool on wire racks.
Stir together powdered sugar, 2 tablespoons boiling water, and lemon juice; drizzle over wreaths. Decorate with candied cherries and pecan halves.
