In a large bowl, dissolve the yeast and sugar in warm milk. Let stand for 5-10 minutes until foamy.
Add melted butter, egg, and salt to the yeast mixture. Mix well.
Gradually add flour, mixing until a soft, elastic dough forms. Knead for 5-7 minutes.
Place dough in a greased bowl, turn to coat, and cover. Let rise in a warm place for 1-1.5 hours, or until doubled in size.
Punch down the dough and divide it into 4 equal portions.
Roll each portion into a thin circle, about 12 inches in diameter.
Place one circle on a baking sheet lined with parchment paper. Sprinkle with mozzarella and Parmesan cheese. Repeat layers, ending with the last dough circle.
Cut the dough into the shape of a Christmas tree, leaving the trunk intact. Make horizontal cuts on both sides to create branches.
Twist each branch a few times to expose the cheese.
Cover and let rise for 20-30 minutes.
Preheat oven to 375°F (190°C). Brush the tree with egg wash (optional) and sprinkle with Italian seasoning and everything bagel seasoning (optional).
Bake for 25-30 minutes, or until golden brown.
Brush with olive oil and garnish with fresh parsley. Serve warm.
