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Dissolve yeast in warm water and sugar. Stir until well blended. Let sit for 10 minutes for yeast to activate.
In a stand mixer fitted with a dough hook, combine yeast mixture with warm milk and 1 tablespoon butter. Add the green chiles and cheese; mix until well blended.
Slowly add flour followed by salt into this mixture and mix until well blended. This dough will be slightly sticky.
Place dough in a greased bowl and let rise covered with a tea towel for 2 to 4 hours, or until doubled in size.
Preheat the oven to 375 degrees F.
Transfer the dough from the bowl onto a floured surface. The dough should still be slightly loose.
Lightly spray loaf pan with cooking spray.
Gently place dough into the loaf pan so it’s evenly distributed. Place dough in loaf pan and cover it with a tea towel while the oven is preheating or up to 30 minutes.
Drizzle dough with melted butter.
Bake for about 45 to 55 minutes, or until the loaf is golden brown.
Remove the loaf from the loaf pan and let it cool on a rack before slicing. To keep it warm, cover with a tea towel.