Preheat oven to 4oo°F with rack in middle.

Beat egg with a fork, then put 1 1/2 tablespoons egg in a small bowl with water (1/2 tablespoon) and lightly beat to make egg wash.

Put remaining beaten egg in a food processor with cream cheese, sugar, and vanilla and purée until smooth. Transfer to a small bowl.

Roll out pastry on a waxed paper and cut into 3 rectangles.

Spread cream cheese mixture in a 1 inch-wide strip down middle of pastry, leaving 1/2inch borders on all sides.

Dollop guava preserves lengthwise on another pastry leaving 1/2inch borders on all sides.

Starting along a long side, tightly roll up the dough, pinching edge against loaf to seal.

Loosely twist the two pieces of rolled dough around each other then form a wreath pinching the edges together.

Brush top of dough with some egg wash.

Place wreath carefully on baking sheet and bake for 25-30 minutes or until puffed and golden-brown,

While wreath is baking, prepare sugar glaze by stirring together confectioner’s sugar, water, lemon juice and vanilla extract.

When wreath is done, transfer to a cooling rack.

Cool for a few minutes then drizzle the glaze over the warm wreath.

Sprinkle with chopped macadamias or other nuts.