In a large bowl, dissolve yeast in warm water. Beat in powdered milk, sugar, salt, butter, and two eggs. Gradually mix in flour until mixture is smooth. (You may have to use your hands as dough gets firmer.)
Turn out onto floured surface and knead until elastic. Place in floured bowl and cover with damp towel. Let rise for one hour.
Punch dough down. Turn out onto floured surface. Divide dough in half. Divide each half into thirds. Shape each piece into rope. Braid three ropes into one bread, do the same with the other three. (Makes two breads.) Pinch both ends of each bread and fold under.
Place both breads on greased baking sheet.
Cover breads with towel and let sit and rise for an hour.
Brush each bread with beaten egg.
Bake on 350 degrees for 30 minutes or until bread is golden brown.