In a small bowl add the water and sprinkle on the yeast and sugar. Let sit for approximately 5 minutes then stir to combine.
In a large bowl of a stand up mixer add the flour and salt and whisk together, make a well in the middle and add the yeast mixture and pesto.
Mix with the hook attachment until smooth, approximately 10-15 minutes. (stop in the middle to scrape down the sides and the hook).
Remove dough from the bowl and knead a couple of times to form a ball, place in a lightly oiled bowl, cover with a clean tea towel, place in a warm draft free area and let rise until doubled about 2 hours.
Remove the dough from the bowl and punch it down, divide into 8 balls, place on a parchment paper lined cookie sheet and cover with tea towel, let rise one hour.
Pre-heat oven to 350F (180C).
Brush with a little milk, then bake for approximately 15-20 minutes or until golden and baked. Enjoy!