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Several glazed nut panettoni in paper liners. Wire rack. White surface.
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Panettone Recipe (Italian holiday bread)

This bread has a unique flavor and texture. It's a yeast dough that's easy to work with but takes some organization; it's a holiday project. Leftovers make the best bread pudding and a unique French toast. This post has detailed images and instructions to guide you through every step.
Course Breads, Dessert
Cuisine Italian
Keyword holiday bread, panettone
Prep Time 20 minutes
Cook Time 45 minutes
Rising and kneading 4 hours 30 minutes
Total Time 5 hours 35 minutes
Servings 3 large breads

Ingredients

Sponge:

  • 1 ½ tablespoons active-dry yeast
  • 1 ½ tablespoons sugar
  • ½ cup bread flour
  • ½ cup milk lukewarm, not hot

Panettone dough:

  • 4 ½ to 5 cups bread flour
  • ¼ teaspoon salt
  • ¾ cup brown sugar
  • 1 cup unsalted butter at room temperature
  • 5 eggs at room temperature
  • 1 teaspoon malt extract
  • 1 teaspoon orange blossom water or panettone essence. Orange blossom water can be bought online.
  • 1 teaspoon vanilla extract
  • 3 cups nuts I use equal amounts of almonds, walnuts, pistachios and cashews
  • ½ cup seedless raisins

Glaze and topping:

  • 1 cup powdered sugar
  • 1 tablespoon lemon juice
  • ½ tablespoon water
  • 1 cup nuts and raisins to decorate on top of the frosting.

Instructions

Sponge:

  • Mix 1 ½ tablespoons active-dry yeast, 1 ½ tablespoons sugar, ½ cup bread flour and ½ cup milk in a small bowl, cover with a clean kitchen towel and leave for about 15 minutes. It will bubble and puff.

Panettone dough:

  • Sift 4 ½ to 5 cups bread flour and ¼ teaspoon salt in a medium bowl. Add ¾ cup brown sugar and stir to mix.
  • Add 5 eggs and 1 cup unsalted butter, softened, in the bowl of a stand mixer.
  • Add 1 teaspoon malt extract, 1 teaspoon orange blossom water and 1 teaspoon vanilla extract. Mix everything. It will not be smooth and that’s fine.
  • Add the sponge and start mixing with the dough hook on medium speed.
  • Add the sifted dry ingredients, 1 cup at a time. If after kneading for about 5-7 minutes the dough does not come together, add extra flour in tablespoons. The dough is soft and supple and should not be too firm or stiff, and, if you touch it with your knuckles, it does not stick.
  • Transfer the dough to a clean bowl, cover with film or a clean kitchen towel and let rise until doubled, from 2 to 3 hours. At this point, you can cover the bowl with plastic wrap and put it in the refrigerator overnight and continue tomorrow.
  • Gently punch down the dough with your fist to release gas and transfer the dough to the clean counter. Stretch it with your hands or roll with a rolling pin until you have a rough rectangle.
  • Place 3 cups nuts and ½ cup seedless raisins on top, covering the dough. Roll as if making cinnamon rolls, forming a tube or cylinder.
  • Slice it in 6 or 7 pieces with a large ktichen knife. Give each piece a few kneads and stack them in an irregular pile. This is to ensure that the nuts and raisins are distributed throughout the dough. They will fall from the bread and will seem like too many. It's how it should be.
  • Knead, joining a little more. The fruits escape; add them back to the dough.
  • Use baking spray or barely brush the paper panettone with oil. Remember that each size is made for a certain amount of dough, so choose them accordingly. I like to weigh 1-pound pieces of dough; it's the best size in my opinion.
  • Divide the dough according to the molds and put the portions inside, pressing just so to level a little. Don't fill them more than ½ of their capacity.
  • Cover and let rise for 1 ½ to 2 hours more. They have to increase the volume and the dough should feel less dense.
  • Turn on the oven at 350°F (180°C).
  • Cut a cross in the center of the sweet bread (I use scissors). It will not be very defined as the dough is a little wobbly. But it'll allow the steam to escape.
  • Bake the 1 pound (½ kilo) bread for about 40 minutes or until a cake tester (or use skewers as it's deep) in the middle comes out clean.
  • Let cool completely on a wire rack.

Glaze:

  • Mix 1 cup powdered sugar with 1 tablespoon lemon juice and ½ tablespoon water until smooth with a consistency like thick honey.
  • Drizzle over cooled breads and sprinkle 1 cup nuts and raisins on top. Let dry before cutting.

Notes

Organization: read the recipe first and ensure you have ingredients at the correct temperature, utensils and equipment needed, and enough workspace. This will make the process so much easier.
Add-ins: Feel free to change them according to your palate. Though I don't like to stray too far from the traditional nuts, dried fruit and candied fruit, I have made one with white chocolate chips and pistachios and another with dark chips and candied orange peel; both were amazing. 
Flavorings: some recipes call for lemon zest and sometimes orange zest. You can add ½ a teaspoon of each.