In a saucepan, add the 1-1/4 cup milk and butter and heat just until the butter is melted. Remove from the heat.
in a large bowl, place the 3 eggs, sugar and vanilla. Beat for several minutes.
Slowly pour the milk mixture into the egg mixture constantly beating until everything is incorporated.
Add the yeast to the mixture and beat until blended.
Mix in the flour a 1/2 cup at a time beating continuously, stop once all of the flour is mixed inches.
Lightly flour the counter then place the dough on it and knead the dough for several minutes.Place the dough in a large bowl and cover the bowl with plastic and a large towel. Let rise until doubled in size, around an hour.
Turn the raised dough onto a lightly floured surface and cut into four pieces. Knead each piece for a minute, then roll into long cylinders. Loosely twist two cylinders together then form into a circle, pressing the ends together.
Line 2 large baking sheets with parchment paper.Place a ring on each tray, then cover and let rise again for about an hour.
Preheat the oven to 350F degrees.
Mix the egg wash by beating an egg and water together, then brush over entire ring. Sprinkle the top with the coloured sprinkles, then place a dyed egg in the centre.
Bake for approximatsly 20 minutes or until the bread has a nice golden colour.