In a large bowl mix water, yeast, salt, sugar, eggs, butter, vanilla extract and lemon zest. Add the rest of the ingredients and mix to combine using your hands or electric mixer. The dough will be soft but will firm up after proving.
Cover and let rise for 2 hours in a warm place, away from drafts.
Divide the dough into 3 equal parts. Sprinkle with flour and shape each one into a ball, seam side down. Place each ball of dough into tall round paper liners (or the tulip cupcake liners), seam side down.
Cover and let rise for 1 hour.
Preheat oven at 350°F/180°C. Remove the plastic wrap and brush with a slightly beaten egg mixed with 1 tbsp water, milk or cream and bake for 30-40 minutes or until golden brown. Let cool completely.
For the glaze: Mix up all the ingredients. If it too thick, add a little more milk, and if it is too runny, add a little more powdered sugar. Pour over the Panettone and decorate with dried fruits.