Prepare the yeast mixture: In a small bowl, combine the warm milk (ensure it's not too hot, or it will kill the yeast) with 1 tsp of the granulated sugar. Sprinkle the active dry yeast over the top. Let it sit for 5-10 minutes, or until it becomes foamy and bubbly. This indicates the yeast is active.

In a large mixing bowl, whisk together the whole eggs, egg yolks, remaining granulated sugar, and salt until well combined and slightly pale. Stir in the lemon zest and vanilla extract.

Add the softened butter to the egg mixture and whisk until incorporated. The mixture may look a little curdled, which is fine.

Pour the activated yeast mixture into the large bowl with the egg and butter mixture. Stir gently to combine.

Gradually add the all-purpose flour to the wet ingredients, about 1 cup (125g) at a time, mixing with a wooden spoon or a stand mixer fitted with a dough hook. Once about half the flour is incorporated, add the optional candied orange peel if using.

Once the dough starts to come together and is too stiff to stir with a spoon, turn it out onto a lightly floured surface. Knead the dough for about 8-10 minutes, or until it is smooth, elastic, and no longer sticky. If using a stand mixer, knead on medium-low speed for 6-8 minutes. Add a little more flour, 1 tbsp at a time, only if necessary to prevent sticking. The dough should be soft and slightly tacky.

Lightly grease a large, clean bowl with a little oil or butter. Place the kneaded dough into the bowl, turning it once to coat the entire surface. Cover the bowl tightly with plastic wrap or a damp kitchen towel.

Let the dough rise in a warm, draft-free place for 1.5 to 2 hours, or until it has doubled in size. The ideal temperature is around 24-27°C (75-80°F).

Gently punch down the risen dough to release the air. Turn it out onto a lightly floured surface. Divide the dough into portions for shaping. For a traditional round loaf, shape it into a ball. For a braided look, divide into three equal portions and roll each into a rope.

Shape the dough: For a round loaf, gently tuck the edges underneath to create a smooth, taut surface. Place it into a greased 20-23cm (8-9 inch) round cake pan or a prepared loaf pan. For a braided loaf, carefully braid the three ropes together and place into a greased loaf pan or shape into a wreath on a baking sheet lined with parchment paper. If creating decorative elements, use dough scraps to form crosses or other shapes and attach them to the top of the loaf.

Cover the shaped dough loosely with plastic wrap or a damp towel. Let it rise again in a warm place for another 45-60 minutes, or until it has almost doubled in size.

Preheat your oven to 180°C (350°F) during the last 15 minutes of the second rise. Prepare the egg wash by beating 1 large egg with 1 tbsp of milk or water.

Gently brush the top of the risen dough with the egg wash. If using decorative dough elements, brush them as well. If desired, sprinkle with coarse sugar.

Bake the bread in the preheated oven for 30-40 minutes, or until the loaf is golden brown and sounds hollow when tapped on the bottom. If the top starts to brown too quickly, you can loosely tent it with aluminum foil.

Once baked, carefully remove the bread from the pan and place it on a wire rack to cool completely before slicing. This allows the interior to finish setting.