Mix 1 cup of flour with sugar, salt, and yeast in a large bowl, and whisk together. 

Place the milk and anise extract into a small saucepan over low heat and warm it to about 110°F.

Make a well in the center of the flour mixture with your hand, and pour in the milk mixture. With your clean hand, swirl it in a circular motion to combine the flour mixture with the milk mixture. Mix in the butter and eggs, one at a time, then mix in the remaining flour until the dough begins to pull together.

Turn the dough out onto a floured work surface, and knead until soft but elastic, about 8 minutes. Cover with a damp cloth, and let the dough rest for 10 minutes. 

Cut the dough into halves.

On floured work surface, roll each half into a ball, then shape the balls into 2 long pieces, about 1-1/2 inches thick and between 18 to 20 inches long. Pinch the 2 top ends together and loosely twist the pieces to form a twisted loaf; pinch the bottom ends together, and form the twist into a ring, and pinch the ends together.

Grease a baking sheet, then lay the loaf onto the prepared sheet and cover with a damp towel/ Let the loaf rise until doubled, about 1 hour.

Preheat the oven to 350°F. 

Brush the loaf with the beaten egg.

Bake the loaf until golden, 20 to 25 minutes. Watch closely towards the end of the baking time so that the bread does not begin to burn. 

Transfer the loaf to a wire rack immediately after baking to cool completely.

Once the bread has cooled, combine all of the frosting ingredients in a small bowl and drizzle the frosting over the cooled loaf. Immediately sprinkle with the nonpareils. Allow the frosting to set completely before slicing and serving.