Sprinkle the yeast over warm water. The best way to test the temperature of your water is to take it from the tap and run your wrist in the stream. If you can’t feel the temperature of the water, it’s perfect. Stir yeast in with a fork until it is dissolved and set aside.
In a large mixing bowl or the bowl of a stand mixer, blend the milk, sugar, and salt with a wooden spoon or a spatula. Stir in the butter, eggs, and yeast mixture.
Gradually stir in the flour. If you are using a stand mixer, use your dough hook. If mixing by hand, continue to use a wooden spoon or spatula. Add flour until your dough is soft enough to handle, usually when it can easily pull away from the sides of your bowl.
Turn out dough on a lightly floured surface and knead until smooth and elastic. You may need to add the last cup or so of flour by hand. Your dough should feel like PlayDoh to the touch and “snap” when you pull it apart.
Spray your bowl with non-stick spray 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, 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. Roll dough to about 1/2" thickness and, using a biscuit cutter, the rim of a glass, or a circular cookie cutter approximately 4" in diameter to cut circles of dough. Re-roll dough until you have about 12-14 circles. Save the remaining dough and refer to directions for what to do with it.
Spray a loaf pan with non-stick spray. Set aside.
Spread about 1/2 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. 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. Bake the loaf for 35-45 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. Leftovers stay fresh, covered tightly at room temperature, up to 5 days. Loaf freezes well, up to 3 months. Wrap tightly. Thaw in refrigerator overnight.
*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.