Bloom the yeast: Pour ¼ cup + 3 tablespoons warmed 2% milk, into a microwave-safe bowl and gently warm to just above room temperature, but be careful to not let it get too hot. Add ¼ cup super fine sugar to the milk and mix until the sugar is dissolved. Add 1 ¼ teaspoons active dry yeast to the milk mixture and set aside until it becomes thick and foamy, about 20 minutes. Once the yeast has bloomed add 1 large room temperature egg and 1 tsp lemon extract, mix until combined.
Mix Dry Ingredients: In a separate large bowl, whisk together 1 ¾ cups + 2 tablespoon bread flour and ¼ teaspoon salt until evenly distributed. Add ¼ cup + 1 tablespoon softened butter mixing until somewhat combined (about 30-60 seconds if using an electric mixer).
Combine: Add the yeast mixture to the flour mixture. Stir until a dough forms and pulls away from the sides of the bowl. A stand mixer with a dough hook can be helpful here. If the dough feels grainy, continue kneading until it’s smooth and elastic.
Rise: Transfer the dough to a clean, lightly greased bowl. Cover with a cloth and let it rise in a warm place until it has doubled in size, about 2 hours.
Prep: While the dough is rising go ahead and pre-heat your oven to 350 F and line an 8x8 pan with parchment paper.
Shape the dough: Once risen, roll the dough out onto a floured surface until it’s about 1 inch thick. Cut into 1-inch squares using a pizza cutter, then roll each into a loose ball. No need to be precise—they can be different sizes. Leave the dough balls spaced out on a flat surface while you work on the lemon sugar mixture. Note: The dough will continue to rise so you’ll want to work quickly.
Melt: in a small bowl melt ½ cup butter. Add 2 teaspoons pure vanilla extract and ½ teaspoon lemon extract, briefly whisk to combine. Set aside.
Prepare the coating: In another small bowl, mix 1 cup granulated sugar with 2 tablespoons lemon zest rubbing the zest into the sugar by hand for about a minute to release its oils.
Assemble and Bake: Dip each dough ball first into the melted butter, then fully coat it in the sugar zest mixture and place it in the prepared baking pan. Try to assemble it in roughly even layers as much as possible. Add the remaining butter to the pan and sprinkle the extra sugar-zest mixture on top. Place on the center rack of your pre-heated oven and bake for 25 minutes until golden brown on top. Cover loosely with aluminum foil and bake for another 5-9 minutes. Remove the pan from the oven and let it cool to room temperature.
Icing: While the bread is cooling down go ahead and make our Super Simple Lemon Icing for topping. Once the bread is cooled use a spoon to drizzle lines on top of the monkey bread for an extra burst of flavor. Sever and enjoy!
