In a liquid measuring cup (or small mixing bowl), combine the warm water, 1 tsp sugar and yeast. Stir and set aside.
Heat milk in microwave until it's "scalded." (See photos and text above in post to learn what this is).
Cut the margarine into cubes and place in a large bowl. Pour the scalded milk over it and stir until the margarine is melted.
Stir in the sugar and salt. Then stir in the eggs and vanilla.
Next, stir in 1 cup of the flour.
Then, add the yeast mixture and the remainder of the flour. (The dough will be soft, but if it's super sticky, add an additional flour tablespoon by tablespoon).
Place the dough in a large greased bowl, loosely covered with a towel. Let rise in a warm place for 1 hour, or until doubled in size.
With shortening-greased hands, form balls (~2 inches) in diameter and place at least 3 inches apart on a parchment-lined baking sheet. (If you don't have parchment paper, use a silicon baking mat or simply grease your pans)
Let rise for 30 minutes.
Using two fingers, press a well in the center of each ball of dough. You want to make a good sized well, but be sure to not press it so far that you see the pan.
Add filling into each well.
Bake at 350°F for 12-15 minutes or until a very light golden brown; let cool.
Make the frosting: Beat the butter until fluffy. Add the powdered sugar, vanilla and almond extract. Beat until smooth and creamy, adding a tablespoon or two of milk if needed.
Spread the frosting on the kolaches and enjoy!
**I recommend warming these up in the microwave for 10 seconds each before eating. It makes them just that much better!! These are truly dreamy!