Combine the warmed milk and water in a small bowl. Sprinkle the yeast over the top and let it sit for about 5 minutes until foamy and puffed on top.
In the bowl of your stand mixer fitted with the dough hook, combine the flour, sugar, and salt. Add the activated yeast mixture, softened butter, and egg. Mix on low speed until a rough, shaggy dough forms.
Knead on medium-low speed for 6 to 8 minutes until the dough becomes smooth, elastic, and slightly tacky. Alternatively, knead by hand on a floured surface for 10 to 12 minutes.
Lightly oil a large bowl and transfer the dough to it, turning to coat. Cover with plastic wrap or a damp towel and let rise in a warm spot for 1 to 1.5 hours until doubled in size.
Gently punch down the risen dough to release the air and transfer to a lightly floured surface. Pat into a rough rectangle, then roll tightly from one short end to the other, pinching the seam closed.
Grease your loaf pan with oil and place the shaped dough seam side down. Cover and let rise again for 45 minutes to 1 hour until it domes about an inch above the rim of the pan.
Preheat your oven to 350°F (175°C). Bake the loaf on the center rack for 30 to 35 minutes until deep golden brown, tenting with foil if the top browns too quickly.
Let the bread rest in the pan for 10 minutes, then turn it out onto a wire rack and cool completely for about 1.5 to 2 hours. Slice with a serrated knife once fully cooled.