For the almond topping place the butter, flour and sugar in a food processor and process until mixture resembles chunky breadcrumbs. Add the roughly chopped almonds and mix all together; assuring that the mixture is still very crumbly. Refrigerate until needed.
For the loaf place the dry yeast in a small bowl with the warm milk, stirring constantly to dissolve.
In a separate bowl whisk the egg, egg yolk and the sugar until creamy and pale in colour, about 2-3 minutes and then add the yeast mixture to it.
Place the flour in a large bowl and make a well in the middle of it, pour in the egg and yeast mixture, pulling everything together to make a dough, add the soft butter and knead until you have smooth dough. You will need to knead for at least 10 minutes.
Place the dough in a large greased bowl, cover with a cloth and leave to rise for a couple of hours in a warm place.
Place in a bowl the grated chocolate and halved and de-stoned cherries.
Butter and line a loaf tin with baking paper and then butter the paper as well. Roll dough into a square about 1 cm thick on well floured surface. Brush edges with egg yolk and spread all but 2 tbsps of the chocolate and cherry filling onto the rolled dough.
Roll dough from one side into a tight log shape, pinching the ends to seal. Twist in 4-5 places into a horseshoe shape, then cross the two halves over each other to form an open ended figure of eight, twist again and fit into the prepared loaf tin, (the purpose is to get a plaited look), spread with the remaining chocolate and cherry filling. Finally sprinkle with the almond topping and leave covered in a warm place to double in volume for an hour.
Pre heat oven to 170c and bake the babka for an hour and twenty minutes.
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