Combine sugar, salt, and 1 cup of flour in a large mixing bowl. Stir.
Add milk, melted butter, and water/yeast mixture. Stir.Add remaining flour and stir until sticky dough forms.
Dump the dough out onto a floured surface. Sprinkle with a few tablespoons of flour and knead dough 2-3 minutes until a soft dough forms.
Place dough into an oiled bowl, cover and let rest 40 minutes.
Roll dough into a 9"x15" rectangle on a lightly floured surface.Cut a stick of butter into 12 slices (butter should be slightly soft). Place half of the slices in the center of the dough. Flatten butter, slightly, using a butter knife.
Fold the bottom of the dough over the butter.
Place the remaining slices of butter on top of the folded dough. Flatten butter, slightly, using a butter knife.
Fold the top section of dough over to cover the second layer of butter.
Turn dough so that the fold is on the side. Roll out to a 9"x15" rectangle.
Fold the dough into thirds, like a letter.
Rotate dough so that the fold is on the side again. Repeat the step above, rolling the dough out then folding into thirds, like a letter.
Wrap dough in plastic wrap and chill for 1 hour.
Roll dough out into a 9"x 15" rectangle. Fold into thirds, like a letter.
Rotate dough so that the fold is on the side. Roll out again and fold into thirds.
Rotate once more so that the fold is on the side. Roll dough into a 9"x15" rectangle then ROLL the dough up tightly (like you would if you were making cinnamon rolls).
Pinch the seam (it may not stay, but do the best that you can) and place the loaf (seam-side-down) into a greased 9"x5" bread pan.
Loosely cover and let rise 40-60 minutes. DO NOT let rise in a warm location like you normally would when making bread. We don't want the butter in the dough to melt. Room temperature is fine. I place mine inside the microwave to keep it free from drafts. Preheat oven to 400 degrees.
Brush loaf with an egg wash (1 egg + 1 Tbsp. water) and bake for 20 minutes.Cover loaf loosely with foil (tent it) and cook an additional 15 minutes.
Let bread cool in pan 5 minutes before transferring to a cooling rack.
Bread is easier to slice when warm (not hot), but I won't judge if you dive right in.