1. In a mixing bowl, whisk together the flour, salt, sugar, and instant yeast.
2. In another large mixing bowl, combine the milk, water, 4 tablespoons of the melted butter (set that last tablespoon aside), and vanilla extract. Stir to combine. Because you're using instant yeast, it doesn’t need to be proofed and can be added directly into the liquids.
3. Using a silicone spatula, slowly stir the flour mixture into the liquid mixture. Mix until the liquid is absorbed and your dough is a sticky ball.
4. Cover the bowl with a damp kitchen towel or with plastic wrap. Place it in a warm spot in your kitchen and let the dough rise for 1½ to 2 hours. The dough should double in size.
5. Set your oven rack in the middle with any extra racks below it, so your panettone has plenty of room to rise. Preheat the oven to 375 °F.
6. You can use a traditional panetonne metal mold or a paper mold. If you’re using the metal mold, use the remaining 1 tablespoon of melted butter, brush the inside of the panettone mold. If you’re using a paper mold, opt for nonstick cooking spray.
7. Sprinkle the chocolate and candied orange peel over the top of the dough. Using two forks, deflate the dough by releasing it from the side of the bowl and pulling it toward the center. Rotate the bowl in quarter turns as you incorporate the chocolate and orange and gently deflate the dough. You should end up with a ball-like mass of dough.
8. Using your two forks again, lift the dough to transfer it into the prepared mold. If the dough is too wet to transfer with the two forks, lightly grease your hands with butter or oil and transfer it to the mold. Do not cover it! Let the dough rise in a warm area of your kitchen (I like to put it close to—but not on top of—the oven). The dough should double in bulk in about 30 minutes. Don’t worry if the dough does not go up to the rim. It will rise some more during the baking process.
9. Set the filled panettone mold on a baking sheet. Bake on the middle rack for 40 to 45 minutes or until the top is nicely browned. If you opted for miniature panettones, bake for 10 minutes at 375 °F, then reduce the heat to 325 °F and continue to bake for 20 minutes. If your panettone is getting too brown on top before it’s done, you can cover it loosely with a piece of aluminum foil.
10. If you are using the pearl sugar garnish, carefully brush the top of the panettone with the melted butter 5 minutes before it is done, then sprinkle the top with the pearl sugar. A good way to check if the panettone is done is to insert a long skewer in the center. If it comes out clean, your panettone is done! An even better way is to check the internal temperature—check out the blog article above for more on this.
11. Remove your panettone from the oven and let it cool for 1 hour before unmolding. If you are using paper molds, you don’t have to worry about that one!

Notes

40 to 45 minutes for full size, 30 minutes for miniature size