Creating Cheesy Christmas Tree Bread is straightforward if you follow these simple steps:

1. Activate Yeast: In a small bowl, combine warm water, sugar, and yeast. Let it sit for about 5-10 minutes until bubbly.
2. Mix Dry Ingredients: In a large mixing bowl, whisk together flour, salt, and dried Italian herbs.
3. Combine Ingredients: Add the activated yeast mixture and olive oil to the flour mixture. Stir until a dough forms.
4. Knead the Dough: Transfer the dough to a floured surface and knead for about 5-7 minutes until smooth and elastic.
5. First Rise: Place the dough in a greased bowl, cover it with a kitchen towel, and let it rise in a warm place for 1 hour or until doubled in size.
6. Prepare Cheese Filling: In a bowl, mix together the mozzarella and cheddar cheeses.
7. Shape the Bread: Punch down the risen dough and roll it out into a rectangle (about 12×18 inches). Cut the dough into triangles.
8. Fill and Shape: Place a spoonful of cheese filling on the wider end of each triangle. Roll the dough towards the point to form a crescent shape.
9. Form the Tree: Arrange the rolled dough pieces on a baking sheet in a tree shape, with the wider ends at the bottom. Leave some space between the pieces for the dough to rise.
10. Second Rise: Cover the shaped bread with a towel and let it rise for another 30 minutes.
11. Preheat Oven: While the dough is rising, preheat your oven to 375°F (190°C).
12. Prepare Egg Wash: Beat the egg in a small bowl and brush it over the dough for a golden finish.
13. Bake: Place the bread in the preheated oven and bake for 20-25 minutes or until golden brown.
14. Cool: Remove from the oven and let the bread cool slightly before serving.

These steps will guide you in creating this incredible Cheesy Christmas Tree Bread effortlessly.