Place warm water in a large bowl or the bowl of a stand mixer fitted with the dough hook. Sprinkle the yeast on top of the water. Whisk with a fork, wooden spoon, or spatula and allow to rest and activate for 10 minutes.
Once the yeast mixture is active and bubbly, add the milk, sugar, salt, melted butter, and egg. Whisk to combine.
Gradually stir in the flour. If using a stand mixer, use your dough hook. If mixing by hand, continue to use a wooden spoon. Add 1 cup of flour, stir, and allow dough to come together until all of the flour has been added. It may still be shaggy, but it should pull away from the sides of the bowl fairly easily.
Turn out dough on a floured surface and knead for about 8-10 minutes, adding flour about 1 Tablespoon at a time if the dough is too sticky, until smooth and elastic. Your dough should resemble the surface texture of PlayDoh when it is done.
Spray the same bowl with non-stick spray or olive oil and place the dough ball into the bottom of the bowl. Flip the dough ball over to coat the top, and then cover the bowl with a lid or towel and place in a warm environment. I like to heat my oven to 200ºF (93ºC), turn it off, then leave the door cracked with the bowl inside. Allow dough to rise until double in size, about 90 minutes.
After dough has doubled, punch down the dough and turn out onto a lightly floured surface.
Divide the dough into 12 equal pieces, then use your hands and fingers to stretch the dough into discs approximately 4" in diameter (this does not need to be perfect). Lay all of the discs out on a flat surface.
Spray a loaf pan with non-stick spray. Set aside.
Spread about 1 Tablespoon of pesto on half of each disc, fold in half, and place folded side down in the prepared loaf pan. Continue with each disc until all of the discs are in the pan, moving things around if necessary. Do not worry about aesthetics or if the filling is squishing out of the sides.
If desired, drizzle olive oil on top, then cover loaf with a clean kitchen towel and allow to rise at room temperature for about 30-45 minutes.
When you are ready to bake the bread, set the rack to the middle position in the oven and preheat it to 350ºF (177ºC). Bake the loaf for 40-45 minutes or until the top is golden brown. Allow to cool on a wire cooling rack at least 15 minutes before turning out and serving. Loaf can be served warm or room temperature, and we enjoyed ours with additional pesto for dipping. Leftovers stay fresh, covered tightly in the refrigerator, up to 5 days. Loaf freezes well, up to 3 months. Wrap tightly. Thaw in refrigerator overnight.
Notes
*If you don't have or can't find this flour, regular bread flour is fine.What to do with leftover dough: roll or shape the dough into about 1/2" thick circle (it does not have to be perfect). Brush with olive oil or more pesto, add seasoning if you'd like (such as garlic powder, onion powder, Italian seasoning, etc), cheese, and bake at 350ºF for about 15-20 minutes until golden brown. Working with yeast: for a comprehensive look at working with yeast in a recipe, see my post about how to bake with yeast.
Nutrition Disclosure
All nutritional values are approximate and provided to the reader as a courtesy. Changing ingredients and/or quantities will alter the estimated nutritional calculations.