Activate Yeast: In a small bowl, combine warm milk (105-115°F), 1 teaspoon of sugar, and yeast. Stir gently and let it sit for 5-10 minutes until foamy.

Mix Dry Ingredients: In the bowl of a stand mixer fitted with a dough hook, combine flour, remaining 1/2 cup sugar, and salt.

Combine Wet & Dry: Add the activated yeast mixture, eggs, melted butter, orange zest, and orange blossom water (if using) to the dry ingredients.

Knead the Dough: Mix on low speed until a shaggy dough forms, then increase to medium-low and knead for 8-10 minutes until the dough is smooth, elastic, and pulls away from the sides of the bowl.

First Proof: Transfer the dough to a lightly oiled bowl, turn to coat, cover with plastic wrap, and let it rise in a warm place for 1.5 to 2 hours, or until doubled in size.

Shape the Bread: Punch down the dough gently. Reserve about 1/4 of the dough for decoration. Divide the remaining dough into two equal portions and shape each into a round loaf. Place on parchment-lined baking sheets.

Create Decorations: With the reserved dough, form 'bones' and a 'skull.' Roll small pieces of dough into ropes, then press with your fingers to create bone-like indentations. For the 'skull,' roll a small ball. Arrange the bones and skull on top of the round loaves.

Second Proof: Cover the shaped loaves loosely with plastic wrap and let them rise again in a warm place for 45-60 minutes, or until visibly puffy.

Bake: Preheat oven to 350°F (175°C). Bake for 25-30 minutes, or until golden brown and cooked through. If browning too quickly, tent loosely with foil.

Glaze & Coat: Once baked, let the bread cool slightly on a wire rack. While still warm, brush with orange juice and sprinkle generously with the 1/2 cup granulated sugar. Optionally, add fresh orange zest.

Serve: Pan de Muerto is best enjoyed fresh with hot chocolate or coffee, as a beautiful centerpiece for your Day of the Dead celebration.