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Combine milk, water, yeast and sugar. Let rest 10 minutes until bubbles and foam appear.
Add remaining ingredients (salt, egg, butter, flour) to the yeast mixture and mix until a soft dough forms.
Knead for 10 minutes until you have a soft, smooth dough.
Cover and let rise for 1 hour.
On a lightly floured surface, divide dough into 2 equal portions.
Shape your loaves, rolling and tucking seams along the way.
Place into greased loaf pans.
Rise for 1 hour.
Bake at 425° for 20 minutes until internal temperature reaches 190° to 200°.
Remove from oven and allow to cool completely before slicing.