Scald milk with saffron, sugar, and salt in a small saucepan; cool to lukewarm
Sprinkle or crumble yeast into very warm water in a large bowl. Stir until yeast dissolves, then stir in cooked milk mixture.
Beat eggs in a small bowl; set aside 3 tbsp for later; beat remaining into yeast mixture. Stir in 1 1/2 cups of flour until smooth; beat in softened butter until completely blended, then beat in remaining flour to make a stiff dough. Knead until smooth and elastic on a lightly floured pastry cloth or board.
Place in a greased large bowl; cover with a clean towel. Let rise in a warm place, away from a draft, 1 hour or until double in bulk.
Punch dough down; knead several times; divide into quarters. Working with one at a time, roll into a rope; cut into 16 even size pieces, then roll each into a 6-inch long pencil thin stip. Cross each two strips on a greased large cookie sheet; curl each end into a small coil; decorate tip of each with a candied cherry squared. Repeat with remaining dough to make 32 buns. Cover; let rise again 30 minutes or until double in bulk. Stir water into saved egg; brush over buns; sprinkle lightly with granulated sugar (optional)
Bake in hot oven (400ยบ) 12 minutes or until golden brown. Remove from cookie sheet; cool on wire racks. Serve warm or cold.