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Take 1 cup lukewarm milk and pour yeast with sugar in it. Stir well and wrap it for about 10-15 minutes until it gets foamy.
Remove the wrap and stir well.
In a large bowl add flour, salt and beaten egg.
Pour the milk and yeast mixture and mix until combined.
Add softened butter and knead for about five minutes.
Roll the dough into a ball and place it in a greased bowl.
Wrap the dough for 1-2 hours until doubled.
Slice and chop jalapeño and cheddar.
Remove the wrap from the dough and punch air out.
Spread the dough on your work surface and arrange sliced peppers and cheese.
Roll the dough tightly into a log and pinch the edges to seal.
Put the dough into a greased loaf pan lined with parchment paper.
Cover it with a napkin for about 30-40 minutes.
Remove the napkin and make a cut in the middle.
Apply egg wash with a soft brush.
Sprinkle half of chopped jalapeños and cheese.
Bake at 350°F for 25 minutes.
Take the loaf out of the pan and apply egg wash again.
Sprinkle the leftover chopped jalapeño and cheese.
Bake again for 5 minutes.
Cut into slices and enjoy!