Recursive dictionary merge

defaults.yaml

userconf:
  auto-upgrade: False
  test: False
  sharedcmd:
    schedule:
      minute: 30
      hour: 0
      daymonth: '*'
      month: '*'
      dayweek: '*'

pillar.sls

acme_sh:
  root:
    userconf:
      accountemail: nnm@nm.uk
      home: /root/.acme.sh
      auto-upgrade: False
      test: False
      sharedcmd:
        command: some-command

test.sls

{%- import_yaml slspath ~ "/defaults.yaml" as defaults %}
{%- for username, user in pillar.get('acme_sh', {}).items() %}
# Some trick by @whytewolf https://gist.github.com/whytewolf/7a113e8a748bb150aa6c97bb35df9929
# Docs will be helpful to understand https://docs.saltstack.com/en/latest/ref/modules/all/salt.modules.grains.html#salt.modules.grains.filter_by
# We have dictionary 'defaults' with key 'userconf' grains.filter_by will select value of
# defaults['userconf'] because it's filtered by default='userconf', than it recursively
# merge value of defaults['userconf'] with value of 'merge' dict. In our case it is user['userconf']
{%- set userconf = salt.grains.filter_by(defaults, default='userconf', merge=user['userconf']) %} 


test_{{ username }}_defaults:
  test.configurable_test_state:
    - changes: False
    - comment: "{{ defaults }}"

test_{{ username }}_defaults_userconf:
  test.configurable_test_state:
    - changes: False
    - comment: "{{ defaults['userconf'] }}"

test_{{ username }}_userconf_updated:
  test.configurable_test_state:
    - changes: False
    - comment: "{{ userconf }}"

{%- endfor -%}