Combine 3/4 cup flour, sugar, undissolved yeast and salt in a large mixer bowl. Heat milk and butter until very warm (120° to 130°F). Gradually add to flour mixture. Beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add eggs and 1/2 cup flour. Beat 2 minutes at high speed. Stir in remaining flour to make a stiff batter. Cover; let rest 10 minutes.
Stir batter down; stir in candied fruits and raisins. Turn into greased and floured 10-cup fluted tube pan. Cover; let rise in warm, draft-free place until doubled in size, about 1-1/2 hours.
Bake at 350°F for 30 to 35 minutes or until done. While Babka is baking make Rum Syrup. Combine sugar and water in a saucepan. Bring to a boil, stirring constantly. Add rum extract. Before removing babka from pan, immediately prick surface with fork. Pour Rum Syrup over cake. Let stand 10 minutes to allow syrup to be absorbed. Remove from pan; cool on wire rack. Sift powdered sugar over top.
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