Warm the milk until lukewarm, crumble in the yeast, add a little honey (about 1 tsp), and let it proof for about 10 minutes, until foamy.
In a large bowl, combine the flour, salt, cinnamon, and vanilla sugar. Add the melted butter, eggs, remaining honey, and the proofed yeast mixture, then start to combine the dough.
Knead the dough until smooth and elastic, about 10 minutes. If necessary, add a little flour. The dough is ready when it pulls away from your hands but is still soft.
Cover the dough and let it rise in a warm place for 1 hour, or until doubled in size. Meanwhile, chop the pistachios if you are not using pre-chopped ones.
Punch down the risen dough lightly, then knead in the pistachios. Make sure to distribute them evenly so that every slice contains some.
Shape the dough: flatten it out, then fold it over so that a small bulge remains in the middle – this gives the stollen its classic shape. Place it on a baking sheet lined with parchment paper and let it rise again for 30 minutes.
Preheat the oven to 350°F (180°C). Bake the stollen for 40–45 minutes, until golden brown. Tip: if the top starts to brown too quickly, cover it with aluminum foil for the second half of baking.
After baking, brush the top with melted butter while still warm, then sprinkle with powdered sugar. Let it cool completely before slicing.
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