Combine the milk, butter, sugar, and salt in a microwave-safe bowl or in a saucepan. Heat and stir until the butter melts. Let the mixture cool to lukewarm.

Transfer the milk mixture to a large mixing bowl and add egg, yeast, flour and mix to form a shaggy dough. Knead the dough until it's smooth.

Place the dough in a greased container and cover. Let it rise for about 90 minutes, until it's puffy though not necessarily doubled in bulk.

Roll the dough into a rectangle about 1/4 inch thick. Spread the pesto and sprinkle the cheese. Cut into  long strips and stack the strips.

Cut the strip into 5 and stack in a greased loaf pan. Allow to rise for another 90 minutes or till the dough starts filling the pan.

Bake at 190 C | 350 F for 25-30 minutes until top is golden.