Old-Fashioned German Coffee Cake

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1 egg, beaten

1/2 cup warm water (80 to 90 degrees F)

1/2 cup warm milk (80 to 90 degrees F)

1/2 cup sugar

1 tablespoon sugar

1/4 cup shortening

1 cup all-purpose flour

Pinch salt

2 (16 ounce) cans peaches in heavy syrup, drained

3 1/2 cups all-purpose flour, divided

1/2 cup packed brown sugar

2 teaspoons vanilla extract

2 (0.6 ounce) cakes compressed yeast cake, crumbled

1/3 cup shortening, melted

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