In a mixing bowl, add sugar, salt and instant yeast to the flour and mix well.
Add olive oil and water and knead to form a smooth and elastic dough.
Grease a bowl with some oil and place the kneaded dough in the bowl and cover it with a cling wrap. Let it rest for 2 hours or until doubled in size.
After the dough is doubled in size, punch it and knead for a minute.
Dust the work surface with some flour and roll the dough into a rectangle. Spread all of the pesto leaving around ¼th inch around the edges.
Sprinkle some grated cheese.
Roll the rectangle lengthwise into a log and with a sharp knife cut through the middle of the log into two parts. Loosely braid one part over the other into a wreath shape and seal both ends and tuck it below.
Transfer the braided bread to a greased baking tray and let it rest for 30 minutes for it to rise again.
Brush some olive oil on the bread and bake in a pre-heated oven at 180°C for 30 minutes or until golden-brown on the top. Serve hot or warm.
Notes
If you are using active dry yeast, then add sugar and yeast to warm water and let it sit for 15 minutes to proof. Then add the flour and the pother ingredients to form a dough.
While using active dry yeast, if the solution does not turn bubbly when left to proof, then the yeast is dead. Repeat the process from the beginning.
The dough takes time to double depending on the climatic conditions. Make sure you place the dough in a warm place.
Adding cheese to the bread is completely optional.
While rolling the dough, make sure to roll it tightly to make sure nothing spills.
Be careful while braiding the dough and transfer it with patience into the baking tray for baking.
Always bake in a pre-heated oven.
Bake for 30 minutes or until the top turns golden-brown.