Dissolve the yeast in 1/2 cup lukewarm water with 1 teaspoon of sugar. Let stand until it begins to rise and foam. In a separate bowl, combine the milk, eggs, 1/3 cup sugar, butter, salt and allspice. Mix well. Add the yeast mixture and gradually mix in the flour. Cover with a damp cloth and let rise 30-45 minutes in a lukewarm oven.
Stir the dough down. Add the raisins, candied fruit, almonds and lemon peel. Knead until well mixed. Divide the dough into 4-5 equal parts. Place in well greased coffee tins and let rise for 30-40 minutes until nearly to the top of the tins.
Preheat the oven to 350ºF.
Bake for 45-50 minutes in preheated oven. Let stand 5 minutes before removing the panetone from the tins. Let cool and wrap in plastic wrap or tin foil.