Baking tin: Grease a 21 x 11 x 7 cm loaf pan (8.3 x 4.5 x 2.75") spray oil and then line it with 2 overlapping sheets baking paper (parchment paper with a 1 inch overhang.
Bread mixture: add the flour, sugar, yeast, salt, milk and butter to a greased food processor bowl. Blitz for 40 seconds to combine. Remove from food processor and transfer to a large greased mixing bowl. Cover the bowl with cling wrap and a tea towel and let sit (rise) for 1 hour.
Segment: once the dough has risen, remove the cling wrap (discard). Lightly flour a work surface and then transfer the dough on top. Roll and shape with your hands for less than a minute and roughly shape into a wide fat log shape. Take kitchen scissors and chop the bread into small pieces about the size of 1 large date..
Pesto and cheese: place the pesto into one bowl and the shredded mozzarella cheese into another. Working 1 piece at a time dip the bread into the pesto followed by the cheese and once done place the seasoned piece of bread into the prepared loaf pan. Repeat until all of the bread has been transferred into the pan. Cover with cling wrap and a tea towel and let sit for 25 minutes.
Oven bake: remove the tea towel and cling wrap after the 2nd rise time. Place the bread into the oven Note 7 (middle shelf, tented) and pour about 1 cup of water into a wire rack with base underneath. Bake for 30-35 minutes.
Cooking method: once the bread is cooked, you can test it with a skewer inserted into the middle or use a digital thermometer to ensure it is cooked through. Then use oven mitts to remove the loaf pan from the oven and set it onto a heatproof surface. Discard the tent and let the bread cool in the tin for 5-10 mins. Run a butter knife around the edge after this initial cooling time and then remove the bread and pace it onto a cooling rack.
To serve: tear and share, pull apart, spread with butter, cream cheese, eat as is or dip into soups and stews.