In a large bowl combine the water, olive oil, sugar, skim milk powder, salt and instant yeast. Mix till well blended.

Add in a cup of flour and beat with a wooden spoon till smooth. Add in another cup of flour and do the same.

Sprinkle a half cup of flour onto a flat surface and pour out the dough on top. Begin to knead and slowly add in more flour till the dough no longer sticks to the table. Knead for about 8 to 10 minutes.

Add about a tablespoon of olive oil into a large bowl. Place dough into the bowl and turn over a few times to lightly coat all sides. Cover with plastic wrap and allow to rest for an hour or till double in bulk.

Pour out the dough onto a very lightly floured surface. Cut in half. Using your fingers flatten out one of the pieces. Roll out to a 9x14-inch rectangle. Spread half the pesto and 1/4 cup Parmesan on top.

Bring in the side by a half inch and then roll the dough like a jelly roll. Pinch the seam closed. Take a sharp knife and cut down the center lengthwise. Open the jelly roll exposing the inside. Take the two cut pieces and braid them together with the cut side always facing up. Place the bread into a greased 4 1/2 x 8-inch loaf pan.

Repeat this whole process with the second piece of dough. Cover both loaves with plastic wrap and allow to rest for an hour or till double in bulk.

Sprinkle the tops with the remaining Parmesan cheese and place into a preheated 375 degree F oven for 30 to 35 minutes. Check the bread about 10 minutes before finished; cover with tin foil if getting too brown.

Remove from oven and allow to cool on a wire rack.