In a saucepan over medium heat, add milk and butter. Stir until melted and then remove from heat.
In a mixing bowl, combine flour, sugar, and salt. Slowly add the yeast and lukewarm milk mixture. Add egg and mix.
Gradually add in 1 cup of flower while kneading (by hand or with mixer) until dough forms a ball and pulls away from edges of the bowl.
Let dough rest for 10 minutes. Preheat oven to 350°.