In large bowl, combine 1-1/2 cups flour, 1/4 cup sugar, salt and undissolved yeast. Heat milk, water and butter until very warm (120o to 130oF). Gradually add to flour mixture. Beat for 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add eggs and 1/2 cup flour. Beat on high speed for 2 minutes. Stir in remaining flour to make a stiff batter. Cover tightly with plastic wrap; refrigerate 2 to 24 hours.
Punch dough down. Remove dough to lightly floured surface. Divide into 3 equal pieces. Roll each to 28 x 4-inch rectangle. Brush melted butter over each rectangle; sprinkle evenly with remaining 3/4 cup sugar and ground cinnamon. Beginning at long end, roll each up tightly as for jellyroll; pinch seams to seal to form ropes. Braid ropes; form braid into oval. Pinch ends together to seal. Place on greased baking sheet. Cover; let rise in warm, draft-free place until doubled in size, about 1 hour.
Bake at 375oF for 25 to 30 minutes or until done. Remove from baking sheet; let cool on wire rack. Brush with Powdered Sugar Glaze; sprinkle with Colored Sugars.
Powdered Sugar Glaze: In medium bowl, combine 2 cups powdered sugar, sifted; and 2 to 3 tablespoons milk. Stir until smooth.
Colored Sugars: Combine 1/2 cup sugar and 8 drops of green food coloring in a covered jar or resealable plastic bag. Shake vigorously to evenly mix color with sugar. Repeat procedure with 1/2 cup sugar and yellow food coloring. For purple, combine 8 drops blue and 16 drops red food coloring before adding to 1/2 cup sugar.