In a large mixing bowl, combine the warm milk and sugar. Sprinkle the instant yeast over the milk and let it sit undisturbed for about 5 minutes, or until it becomes frothy and bubbly.
Add the olive oil, all-purpose flour, and salt to the frothy yeast mixture. Stir until a shaggy dough forms. Transfer the dough to a lightly floured surface and knead for about 5-7 minutes until the dough is smooth and elastic.
Shape the kneaded dough into a ball and place it in a lightly greased bowl. Cover the bowl with a damp kitchen towel and let it rise in a warm, draft-free area for approximately 1 hour, or until the dough has doubled in size.
Once the dough has risen, gently punch it down to release some of the air. Roll it out on a floured surface into a square approximately 12x12 inches.
Evenly sprinkle the garlic powder and Italian seasoning over the surface of the rolled-out dough. Layer the shredded mozzarella and cheddar cheeses evenly across the dough, ensuring even coverage.
Using a sharp knife or a pizza cutter, slice the dough diagonally into triangles. Aim to create a tree shape, with larger triangles at the bottom and smaller ones towards the top.
Carefully stack the dough triangles, starting with the largest at the base and layering upwards. Position the stacked triangles in a star-like formation on a baking sheet lined with parchment paper, shaping them into the form of a Christmas tree.
Preheat your oven to 375°F (190°C).
In a small bowl, beat the egg and then brush it generously over the top of the assembled tree, ensuring an even golden finish during baking.
Place the baking sheet in the preheated oven and bake for 20-25 minutes, or until the bread is golden brown and the cheese is bubbling and melted.
Once baked, remove the bread from the oven and let it cool slightly. Garnish generously with freshly chopped parsley for an extra festive touch.
Notes
Serve warm and encourage guests to pull apart their favorite cheesy bite.