Add 1 tablespoon of sugar into the 1/2 cup of water and stir. Add the yeast, and stir. Set aside for 5 minutes until the mixture is frothy.
In a large bowl, whisk the 3 raw eggs with 2/3 cup sugar until light and frothy. You can whisk by hand or use an electric mixer. This process takes approximately 30 seconds to 1 minute.
Add butter and vanilla to the bowl and whisk until thoroughly mixed., You can whisk by hand or use an electric mixer. This process takes approximately 30 seconds to 1 minute.
Using a wooden spoon or Danish dough whisk, begin adding flour to the bowl, 1 cup at a time until the flour is completely incorporated with the wet mixture and dough begins to form. (If you are using a stand mixer, remove the whisk attachment and switch to the dough hook.)
Continue adding one cup of flour at a time to the bowl until the dough easily pulls away from the sides and does not stick to your fingers when touched.
Add salt and knead the dough for 10 minutes by hand or 5 minutes by machine.
Remove the dough from the bowl and grease the bowl with a bit of olive oil.
Return the dough to the greased bowl and turn the dough over a few times in the bowl until it is fully greased.
Cover the bowl and place it in a warm place to allow the dough to rise for one hour or until it doubles in bulk.
After one hour, punch down the dough and transfer it to a floured surface. Cut the dough into four even pieces.
Roll out each piece into a 20" long strip.
Braid two pieces together and set aside on a floured surface.
Braid additional two pieces together and set aside on a floured surface.
Cover both braids and allow them to rise for 45 minutes.
After 45 minutes, take each braid and join them together into a circle. Transfer the circled braid to a parchment-lined or greased baking sheet. (See video.)
Preheat the oven to 350°F (177°C).
Nestle the 3 colored raw eggs evenly spaced in the circled braid. (See video.)
Whisk together 1 egg and 1 tablespoon of water in a small bowl. Using a pastry brush or the back of a spoon, coat the braid with the egg "wash." Do not coat the colored eggs with the wash, only the braid. Once the braid is coated, shake the sprinkles over the braid.
Place the baking sheet with the circled braid on the middle rack of the preheated oven. Bake for 30 minutes or until golden brown.
Remove the cooked circled braid from the oven and transfer it to a cooling rack.
After cooling, serve and enjoy!
Italian Easter Bread is best eaten the same day it is made. But if you decide to make it a day in advance, wrap it well and keep it at room temperature.
If you have any leftovers, wrap well and refrigerate. The bread will stay fresh for 3-4 days. Before serving, uncover the bread and bring it up to room temperature. You can also freeze the bread for 2-3 months, if wrapped well. As with refrigerated bread, allow the frozen bread to come up to room temperature, uncovered, before serving.