Place milk, eggs, salt, butter, and sugar in a stand mixer bowl. Using the dough hook, mix together. In a small bowl, dissolve yeast in the 1/2 cup warm water, then add to the mixer bowl. Add flour in gradually, using only enough flour so that you can handle the dough. Lighter dough makes lighter bread and rolls.
Turn out onto floured surface. Cover with a greased bowl and let rise until double, about 1 hour.
Divide dough into three equal portions and work with one at a time.
Roll dough into a 14 x 18 in. rectangle. Cut into three strips. Spread butter down lengthwise center of each strip.
Combine brown sugar and cinnamon, sprinkle over butter. Top with nuts if using.
Bring dough up around filling, sealing edges to form three ropes.
Place on baking sheet and loosely braid. (The trick for me was to remember that each rope moved to the center.)
Let rise until double, about 30 minutes.
Bake in moderate oven 350 to 375 degrees for 30 minutes. (Cover with foil for last few minutes if necessary to prevent over-browning.)
Combine confectioner's sugar and enough milk to make a thin glaze. Drizzle over bread while still warm. Sprinkle with red and green sprinkles.
You can also put walnuts on top which look pretty, but nobody in my family likes them so we go without.