Italian Easter Sweet Bread (Pane di Pasqua)

Warm the milk.
In a small saucepan, heat milk just until hot enough to melt the butter (do not boil). Remove from heat, add butter, and let cool to room temperature.
Activate the yeast.
Add yeast to warm water. Let stand 10–15 minutes until slightly foamy.
Make the dough.
In a large bowl, beat 3 eggs until frothy. Add sugar, cooled milk mixture, vanilla, and orange zest. Mix until blended.
Add salt and half the flour. Stir, then add remaining flour and mix until a soft dough forms.
Turn onto a lightly floured surface and knead for 5–6 turns. Shape into a ball and divide in half.
First rise.
Grease two bowls with softened butter. Place dough balls inside and cover tightly. Let rise in a warm place until doubled, 1–2 hours.
Shape & second rise.
Punch down one dough ball. Divide in half and roll each into a rope about 20 inches long (24 inches for a ring).
Place the ropes side by side and braid them. Pinch ends and fold under for a loaf, or curve into a ring and pinch ends together.
Gently nestle 3 colored eggs into braid folds. Repeat with second dough ball.
Cover and let rise 30–45 minutes until doubled.
Bake.
Preheat oven to 350°F.
Beat egg yolk with 1 tablespoon water and brush over loaves. Add candy sprinkles.
Bake 20–25 minutes until golden brown. Cool completely before slicing.