In a large mixing bowl, combine the all-purpose flour, instant yeast, white granulated sugar, vanilla sugar, baking powder, and salt.
In a separate bowl, mix the lukewarm milk, egg, and melted unsalted butter until well combined.
Gradually add the wet ingredients to the dry ingredients, mixing until a dough forms.
Incorporate the vanilla pudding into the dough, ensuring it is evenly distributed.
Knead the dough on a floured surface for about 10 minutes until it becomes smooth and elastic.
Place the dough in a lightly greased bowl, cover it with a cloth, and let it rise in a warm place until it doubles in size, approximately 1 hour.
Once risen, punch down the dough to release the air, then shape it into a loaf.
Place the shaped dough into a greased loaf pan and let it rise again for about 30 minutes.
Preheat the oven to 180°C (350°F).
Bake the bread for 25-30 minutes or until it is golden brown and sounds hollow when tapped on the bottom.
Allow the bread to cool in the pan for a few minutes before transferring it to a wire rack to cool completely.
Sprinkle granulated sugar on top if desired before serving.
