In a large mixing bowl, combine 1 cup of flour, sugar, and yeast.
Add the warm milk and melted butter. Mix well.
Beat in the eggs, salt, and vanilla extract.
Gradually add the remaining flour to form a soft dough.
Knead the dough on a floured surface until smooth and elastic, about 6-8 minutes.
Place the dough in a greased bowl, turning once to grease the top. Cover and let rise in a warm place until doubled, about 1 hour.
Preheat the oven to 350°F (175°C).
Divide the dough into three pieces. Roll each piece into a 16-inch rope. Braid the ropes together and form into a ring, pinching the ends to seal.
Place the braid on a greased baking sheet. Cover and let rise until doubled, about 30 minutes.
Bake for 30 minutes or until golden brown. Cool on a wire rack.
Decorate with colored sprinkles before serving.