Prepare the Dough:
In a large mixing bowl, combine the bread flour, sugar, salt, and instant yeast.
In a separate bowl, mix the warm milk and water together.
Add the milk mixture and the egg to the dry ingredients. Stir until the dough begins to come together.
Knead the Dough:
Transfer the dough to a lightly floured surface and knead for about 10 minutes, until the dough is smooth and elastic.
Gradually add the softened butter and continue kneading until fully incorporated. This may take an additional 5-10 minutes.
First Rise:
Place the dough in a lightly oiled bowl, cover with a damp cloth or plastic wrap, and let it rise in a warm place for about 1 to 1 1/2 hours, or until doubled in size.
Shape the Dough:
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