Mix 1 cup flour, 1/2 cup sugar, salt and undissolved yeast thoroughly in large bowl.
Combine milk, water and margarine in saucepan; place over low heat until liquids are warm. Margarine does not need to melt. Add to dry ingredients gradually; beat with electric mixer at medium speed for 2 minutes, scraping bowl occasionally. Add 4 eggs, anise and orange extracts and 1 cup flour; beat at high speed for 2 minutes, scraping bowl occasionally. Stir in enough remaining flour to make soft dough. Cover; let rise in warm place free from draft for about 1 hour or until doubled in bulk. Stir down. Turn out onto lightly floured board; divide in half.
Shape each half into ball, reserving about 1/4 cup dough from each half for trim. Place balls in 2 well greased 8-inch round cake pans. Make four 3-inch bone shapes, four 1 1/2 inch tears and 1 round ball about 1 inch in diameter from EACH HALF of reserved dough.
Place ball on top center of dough; arrange tears and bones around side. Cover; let rise in warm place free from draft for about 1 hour or until doubled in bulk. Brush lightly with beaten egg, keeping egg from dripping onto side of cake pan; sprinkle dough with sugar. Bake in preheated 375°F degree oven on lowest rack position for about 25 to 30 minutes, or until done. Remove from pans; cool on wire rack.
New Holiday Cookbook from Home Economics Teachers.