Combine flour with sugar, yeast, milk, salt, eggs and butter in a mixer with a dough hook. Beat slowly for 3 minutes, then speed up and beat 8 more minutes. Let dough rise 2 hours.
Divide the dough into 3 balls. Let them sit on a floured work surface 10-20 minutes. Roll each ball out into a sausage. Braid the sausages, then seal the ends to form a wreath.
Cover with a lightly damp cloth and let rise 1 1/2 - 2 hours on a baking tray. Preheat oven to 200 degrees C.
Beat the egg with the water and brush all over the loaf. Bake 30 minutes.