Need help with a dough recipe from my grandmother

I hope this is the right place for this. I recently had a craving for a dish my grandmother used to make, and just got the dough recipe from my dad. The writing is easy to read, however the order of things is a bit confusing and hope someone can someone with more experience with making dough could help me figure it out.

The first part of the recipe is to mix yeast with warm water. How long should that sit for? 15 mins?

While the yeast is working it's magic, you mix margarine, salt, sugar and milk, bringing it to a boil and let it cool a bit, then add some vanilla, mace and an egg. Finally add the yeast mixture to all of this. I'm fine up to this point, but the rest is a bit confusing for me. Here is a picture of the last part.

To me, it looks like you add 1.5 C flour, mix, and then add another 1 1/3 cups and mix. There is a note beside that saying 3 hours. I'm guessing that means I let all that sit in a warm place for 3 hours.

But then below that, where it says first hour to add 3/4 C of margarine in a hole in the middle of the dough and to fold edges towards centre. Does this mean I just let it sit there and melt itself or something? Should I add that after the first hour or before the 3 hours starts?

Then it says to add 1T of flour every hour for 3 hours. I'm assuming I mix/fold it in every 3 hours?

So then I'm guessing the "3 hour" note earlier includes adding the margarine and flour..so it's 3 hours total, rather than 6.

My dad also mentioned something about punching the dough. Would I do that every hour when adding the flour maybe?

Thanks a lot for any help!

bon appetit