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1
Prepare a heavy-duty stand mixer with kneader blade attachment.
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2
In a small saucepan heat the milk with butter and salt (the sugar will be proofed with the yeast) until the milk is warmed and the butter is melted; remove from stove top and cool to lukewarm (I stick the saucepan in the fridge for about 20 minutes).
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3
Proof 1 tablespoon plus 1 teaspoon dry yeast in 1-1/2 cups warm water with 2 tablespoons sugar until foamy (about 8-10 minutes).
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4
Place 4-1/2 cups flour in the stainless steel mixing bowl.
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5
When the milk mixture is luke warm and the yeast is proofed add to the mixing bowl.
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6
Start kneading adding in more flour if needed to create a soft smooth dough; knead for about 8 minutes.
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7
The last couple of minutes of kneading add in the grated cheddar cheese; mix until combined with the dough.
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8
Remove the dough to the counter; cover with a clean towel and let rest about 5 minutes.
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9
Gather up the dough and shape into a ball.
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10
Place in an oiled bowl; cover with plastic wrap or a clean towel, then let rise in a warm place for about 1 hour.
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11
Punch down the dough and let rest covered for about 5-6 minutes.
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12
Divide the dough evenly in half and shape into two oval loaves.
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13
Place the two loaves onto a large greased baking sheet (leaving room between the dough).
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14
Cover and let rise for about 30 minutes.
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15
In a small bowl mix together the egg and water; brush liberally onto the top and sides of the dough (you will have some egg mixture leftover).
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16
Bake in a 400 degree oven for about 23 minutes or until lighly golden brown; remov quickly sprinkle with grated cheese, place back into the oven and bake until browned (another 3-5 minutes).