Combine warm water, sugar, and yeast in a measuring cup or bowl. Stir with a spoon to mix and allow yeast granules to dissolve, about 5 to 10 minutes.
Combine bread flour, sugar, salt, and butter in stand mixer bowl. Create a well in the center. Add egg, warm milk, and yeast mixture.
Attach dough hook and turn on the mixer on speed 2. Mix for 1 minute. Scrape dough down dough hook and down sides of bowl if necessary.
Turn on the mixer again on speed 2 and continue to mix for another 5 minutes. Turn off mixer and remove bowl from the stand mixer.
Gather the dough from the bowl and form a neat, tight ball. Place the dough back into the bowl and cover bowl with a plate. Leave to rise for 1 to 1½ hours until dough has more than doubled in volume.
Turn dough onto a lightly floured work surface. Punch down gently and cut into 4 portions. Form each portion into a ball.
Roll one portion of dough into and 11 inch circle. Place the rolled out dough onto a parchment line baking sheet. Spread ⅓ of the pesto to within ½ inch of the edge. Repeat with 2 more balls of dough.
Roll out the remaining ball of dough and place on the top. Do not spread pesto on the top. You should end up with 4 layers of dough.
Place a small 2½ inch bowl or round cutter in the center of the top layer of dough. Do not press down. With a sharp knife, make 16 evenly spaced cuts from the small bowl or round cutter to the edge of the dough to form a star burst.
Take 2 adjacent strips of dough and twist two or three times outward. Pinch ends together. Repeat with remaining strips of dough.
Cover with oiled plastic wrap and leave in a warm place to rise for approximately 45 minutes.
Preheat oven to 375˚F /190⁰C. Bake for 20 to 22 minutes or until golden brown. Remove from oven and brush melted butter on the top.
Carefully transfer onto a wire rack to cool completely.
Notes
** I used store bought pesto but you can make your own, if preferred.