Stir together yeast, 1 cup warm water, and 2 tablespoons sugar in a 2-cup liquid measuring cup; let stand 5 minutes.
Stir together remaining 6 tablespoons sugar, flour, and next 3 ingredients in bowl of a heavy-duty electric stand mixer. Add yeast mixture, and beat at medium speed with mixer, using dough hook attachment, 6 minutes.
Divide dough into 12 equal portions; shape into balls, and place on 2 lightly greased baking sheets (6 balls per baking sheet). Flatten to 4-inch-wide circles with hand; press thumb in center of each circle to make an indentation (about the size of a quarter). Spoon 1 tablespoon preserves in each indentation.
Cover and let stand in a warm place (85°), free from drafts, 20 minutes (dough will not double in bulk).
Bake at 375° for 13 to 15 minutes or until golden brown. Cool on baking sheets on wire racks. Stir together powdered sugar and 1/3 cup water; drizzle evenly over breads.