Make the dough. Heat the milk until lukewarm and pour into a big bowl. Stir in the dry yeast and let sit for about 10 minutes.
Add flour, soft butter, egg yolk, sugar and salt into the milk mixture. Mix until the dough comes together and then knead until it’s very smooth and elastic – for about 7-10 minutes.
Place the dough in a bowl, cover with plastic wrap or clean kitchen towel and let rise for about 1.5-2 hours until puffy.
Make the pesto. Mix all the ingredients in a blender. Season with more salt if needed.
Preheat the oven to 175°C.
Turn the dough onto the table. Press and roll the dough out into a large rectangle. (See pictures above).
Spread a thin layer of the pesto evenly over the dough. Roll the dough into a long tight roll. Cut it in half lengthwise, so you can see the pesto layers (see pictures above). Braid the two long pieces so that the pesto layers are facing upwards.
You can bake the bread just on a baking tray or use a loaf tin to make it keep it’s shape. Line the loaf pan with baking paper and lift the braided pesto bread carefully into the pan. Sprinkle some sesame seeds on top and brush the bread with melted butter.
Bake in the oven for about 50-60 minutes, until the bread is just cooked and beautiful golden brown on top (don’t let the bread dry in the oven). Enjoy just how it is or with some delicious toppings!