In a medium saucepan, heat milk and butter over medium-high heat, stirring occasionally, until the butter melts. Stir in sugar and salt. Remove from heat and let cool to no higher than 110 degrees.
Dissolve the yeast in 1/4 cup warm water (100 to 110 degrees). Let stand for 5 to 10 minutes, until foamy and bubbly on top. (If the mixture doesn’t foam, the yeast may be inactive - start over with fresh yeast.)
Meanwhile, place the cooled milk mixture in a large mixing bowl. Using the whisk attachment on an electric mixer, blend in 1/2 cup flour. Add 1/2 beaten egg and the anise seed; mix to combine. Stir in the foamy yeast mixture.
Using a dough hook and keeping machine on speed 2, add just enough flour to blend in, 1/2 cup at a time, to form dough. Beat for 2 additional minutes or until dough clings to the hook and cleans sides of the bowl. Knead an additional 2 minutes on speed 2 or until the dough is smooth and elastic (dough will be sticky).
Remove dough from bowl and turn out onto a lightly floured surface. Knead a few times by hand to confirm texture is correct (it should feel like your earlobe or a baby’s bottom).
Transfer dough to a large greased bowl, turning once to coat surface. Cover with a clean dish towel and let rise in a warm place (85 degrees) about 45 to 60 minutes or until doubled in bulk.
Preheat oven to 350 degrees. Butter two 8-by-4-inch loaf pans.
Punch down dough and knead briefly to push out additional air. Divide dough in half and shape each half into an oblong loaf that will fill the prepared pans; put in pans. Brush tops with remaining beaten egg and sprinkle with sesame seeds.
Bake about 35 minutes or until golden brown and loaves sound hollow when tapped on top. Remove from pan and cool completely on a wire rack.