Mix the yeast in the warm water and let sit for 5 minutes. In a large bowl or the bowl of the stand mixer, beat 2 eggs (reserve 3rd egg for egg wash), milk, sugar, salt and shortening. Add the yeast and water mixture and mix until combined. Add 2 1/2 cups flour and mix until combined.
With the mixer on low or mixing by hand, slowly add the remaining flour until completely mixed in. Knead by hand for 5 minutes. Grease a large bowl with shortening and transfer the dough to it. Cover and allow the dough to rise until doubled, 1 hour.
After 1 hour rising, punch the dough down to remove the air. Cover, and allow to rise again for 30 minutes.
On a floured surface, divide the dough into 2 pieces for 2 large breads, or 4 pieces for 4 small breads. Divide each of these pieces into 3 and roll each small piece out into a log the width of two fingers. Pinch the three logs together at the top and then braid them, pinching them together again at the other end.
Add the dyed eggs. You can choose to nestle the dyed eggs in-between the dough of the braids, or to form the braided dough into a ring and nestle them into the center of the ring. Either way, make sure the eggs are surrounded by dough so they cook propery. Repeat this process with the remaining dough.
Preheat the oven to 375. Grease a baking sheet and carefully transfer the breads to it. Cover with a dish cloth and allow the bread to rise again, 30 minutes.
Beat the remaining egg. Brush this egg wash onto the breads. Add sprinkles if desired. Bake for 20 to 25 minutes until golden brown