In a big mixing bowl, marry all-purpose flour with sugar, salt, and dry yeast. Make a dent in the middle for an egg, lukewarm milk, and water.
Knead the dough until it is soft but not sticky. You may need to add some more flour, depending on the type you’re using.
I used a mixer with a dough attachment for kneading, and it lasted about 6-7 minutes to achieve the perfect consistency. You can knead it by hand, but make sure to do it for about 10 minutes to activate the gluten.
Cover the bowl with plastic wrap and leave it at room temperature for about an hour to double up in size.
Knead it one more time for about a minute and leave it to rest again for an additional half an hour.
Sprinkle your working space generously with flour and use a rolling pin to thin out the dough. Aim for a rectangle shape about 1/4 inch thick.
With a pizza roller, cut out a large triangle.
Place a parchment paper on a baking tray and transfer the triangle.
Smear a generous amount of pesto on the dough. I used about three tablespoons.
Now, use the scraps of the dough to create another triangle. Just attach two leftover parts of the rectangle together and smooth out the seam with your fingers. It doesn’t have to be perfect, just the approximate size of your first triangle.
Cover the pesto dough with the new piece. Use your fingers to pull the top layer over the bottom one so you have a uniform shape.
With a pizza roller or a knife, cut the triangle like this: leave the middle intact and cut an inch thick ribbons on both sides. Make sure they are parallel. Do it all the way to the top.
Now, twist each ribbon to create a little spiral bread stick. The finished product should look like a Christmas tree.
Optionally, use some scraps to make a star for the tree. Just use a cookie cutter. For the base trunk, shape two squares and fill it with pesto. Attach the trunk to the tree before baking.
Coat the whole tree with an egg yolk.
Bring your oven to 390 °F (200 °C) and toss the pastry in for about half an hour until it is golden on top.
If you’re aiming for a full holiday look, arrange cherry tomatoes on the top to act as ornaments. Enjoy!