To make decorative icing: Combine all of the ingredients except the dried fruit and mix for approximately 5 minutes until you get a paste that’s the consistency of butter.
Reserve the dried and candied fruit for use later as decoration.
To make cake: Combine the butter, margarine and sugar and mix for 3 minutes.
Add the eggs, milk and salt and mix for 1 minute.
Add flour and the yeast that’s been activated in warm milk and mix for 2 minutes.
Add the lard and mix 8 minutes until the mixture doesn’t stick to the bowl.
Let the dough rest in the mixing bowl covered by a towel on the counter for an hour or until it doubles in size.
Place the mixing bowl in the refrigerator and let the risen dough rest for another 30 minutes.
Roll and shape the dough by hand into the donut-like rosca de reyes shape on an unfloured board. Then place it on a baking tray greased with the unsalted butter.
Let the shaped dough rest uncovered in a warm place for another 30 minutes.
Preheat oven to 350ºF.
Add the decorating paste to the top of the shaped dough.
Insert one ceramic baby Jesus figurine into the bottom of each cake so it’s hidden from sight.
Place the decorated rosca de reyes in the oven and bake for 30 minutes.
Let the cake cool then add the dried and candied fruit to the top. Serve.