In a small bowl, combine the warm milk and active dry yeast. Let it sit for about 5 minutes until it becomes frothy.

In a large mixing bowl, combine the flour, sugar, and salt. Mix well.

In a separate bowl, whisk together the melted butter, eggs, vanilla extract, and anise extract (if using).

Pour the milk and yeast mixture and the egg mixture into the dry ingredients. Mix with a wooden spoon until a dough begins to form.

Knead the dough on a floured surface for about 8-10 minutes until smooth and elastic.

Place the dough in a greased bowl, cover with plastic wrap or a kitchen towel, and let it rise in a warm place for about 1-2 hours or until doubled in size.

Once the dough has risen, punch it down and divide it into three equal pieces. Roll each piece into a long rope (about 12-15 inches long).

Braid the three ropes together and form a circular shape. Pinch the ends to seal the braid. Place the braided dough onto a parchment-lined baking sheet.

Gently nestle the colored eggs into the bread, spacing them evenly around the circle.

In a small bowl, beat the remaining egg and brush it over the braided bread for a shiny finish.

Let the bread rise again for about 30 minutes while you preheat the oven to 350°F (175°C).

Bake in the preheated oven for 30 minutes or until golden brown. If the bread starts to brown too quickly, cover it loosely with aluminum foil.

Remove from the oven and allow it to cool on a wire rack. Optionally, sprinkle with colored sprinkles while still warm.