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In a large bowl, mix together the warm water, sugar, and yeast and let sit for 5–10 minutes until foamy.
Add the egg and softened butter and mix until combined.
Stir in the flour, salt, garlic powder, onion powder, basil, and Italian seasoning and knead for 8–10 minutes until a smooth, elastic dough forms.
Cover and let rise in a warm place for about 1 hour or until doubled in size.
Meanwhile, combine the melted butter, minced garlic, and parsley.
Roll the dough into a large rectangle and brush generously with the garlic butter mixture.
Sprinkle evenly with the mozzarella and Parmesan cheese.
Cut the dough into strips or squares and stack or layer them into a greased loaf pan.
Cover and let rise again for 30–45 minutes.
Bake at 350°F (175°C) for 30–35 minutes, or until golden brown and cooked through.
Brush with any remaining garlic butter immediately after baking and serve warm.