First, generously grease your Panettone pan with softened butter. If you’re using an 8-inch deep cake pan, line the sides with baking parchment, letting it extend about 2 inches above the rim, and secure it with kitchen string. This gives your delicious Panettone plenty of space to rise!
In a small bowl, combine the warm milk, dried yeast, and 1 teaspoon of sugar. Give it a gentle stir and let it sit for a few minutes until it gets nice and foamy, showing that your yeast is alive and ready to work its magic.
In a large mixing bowl, beat together the remaining sugar, softened butter, and vanilla extract using a hand mixer. Continue beating until the mixture is beautifully light and creamy. This step is crucial for achieving that signature fluffy Panettone texture!
Stir in the grated lemon and orange zests, filling your kitchen with a wonderful citrus aroma. Then, gradually beat in the eggs, one at a time, making sure each is fully incorporated before adding the next. If the mixture looks a little curdled, don't worry – just add a tablespoon of flour and keep mixing; it will smooth out.
In a separate large bowl, whisk together the main portion of your flour (start with 3 ½ cups) and the pinch of salt. Make a little well in the center. Pour in the activated yeast mixture, followed by your creamy butter and egg mixture. Using a large spoon (or a stand mixer with a dough hook on low speed), gently fold everything together until a soft, sticky dough forms.
Knead the dough directly in the bowl for about 5 minutes until it starts to come together, even if it feels quite sticky.
Lightly flour your work surface and turn the sticky dough out onto it. Knead for another 10 minutes. As you go, you’ll need to lightly dust your hands and the work surface with more flour to keep the dough from sticking too much. You'll notice it becoming softer and more elastic, though it will still be a bit sticky due to the rich butter content – this is perfectly normal and what makes Panettone so special! (You might use up to an extra 2/3 cup of flour in total during this process, depending on your eggs.)
Place the kneaded dough in a lightly greased bowl, cover it snugly with plastic wrap, and set it in a warm place for about 2 hours, or until it has delightfully doubled in size.
While your dough is rising, place the raisins and rum extract in a small saucepan. Heat gently on low for about 5 minutes, allowing the raisins to plump up and soak in that delicious rum flavor. Set them aside to cool completely.
Once your dough has risen beautifully, gently turn it out onto a lightly floured surface. Knead it for another 5 minutes, then gradually work in the cooled, rum-soaked raisins and the finely chopped candied lemon and orange peel until they are evenly distributed throughout the dough. Shape the dough into a smooth ball and carefully place it into your prepared Panettone pan.
Lightly cover the panettone again with plastic wrap and let it rise in a warm spot for another hour. It should wonderfully reach the top of your pan or parchment collar.
Preheat your oven to 350°F (175°C). In a small bowl, whisk together the egg white and 1 tablespoon of powdered sugar. Gently brush this lovely glaze over the top of your risen Panettone.
Carefully place the Panettone in the preheated oven and bake for 50-55 minutes. It’s ready when it’s beautifully golden brown and a skewer inserted into the very center comes out clean.
Let the Panettone cool in its pan for 10 minutes before gently transferring it to a wire rack to cool completely.
Once fully cooled, give it a final dusting of powdered sugar for a delightful finish. Slice into generous wedges and enjoy this homemade, airy Italian treat!