Melt the butter and use it while it is still hot.
In a big bowl mix the milk, flour, dry yeast, sugar, egg and butter.
Knead until you get a dough.
Cover the bowl, put it in a warm place, and prove the dough for at least two hours.
Dust your work surface with flour.
Roll the dough until you have a rectangle of ca. 25 x 40 cm (10 x 16 in.).
Spread the Nutella evenly on the dough rectangle.
Add the cherries, try to distribute them evenly.
Roll up the dough.
Cut across the roll so that you have two half rolls.
Turn them so that the filling is facing up.
Twirl the two half rolls while making sure that the filling is still always facing up.
Grease a loaf pan (ca. 25 cm/10 in. long) or line it with baking paper.
Put the twirled loaf into the pan.
Prove it in a warm place for another ca. 1 hour.
Preheat oven to 190°C (or 375°F).
Bake the loaf in the oven for ca. 45 to 55 minutes.
Just before you take the babka out of the oven, make sugar syrup by boiling the water with the additional sugar.
When you take the babka out of the oven, immediately coat it with the sugar syrup.
Let it fully cool down in the pan.