Add sugar, water, apple, raisins, cinnamon, and lemon peel to a saucepan and cook until syrup.
Stir in the poppy seeds, a fourth of a pound at a time. Stir until smooth and thick enough to spread. Cool.
For the Dough
Combine dry ingredients in a bowl. Cube the butter, if using, and cut it into the dry ingredients until it resembles small peas.
In small bowl, sprinkle the yeast over the warm milk and add to the dry ingredients, and knead until the dough comes together.
Divide the dough in half and roll it out into a rectangle. Spread the syrup on the dough in an even layer, and roll the dough (not tightly) lengthwise. Beat the egg and brush it on the top of the cake roll. Let the egg wash dry(about 15 minutes) and repeat 3 more times. This counts as the rising time.