Grease four 9x5x2-inch loaf pans; set aside
In stand mixer bowl, combine yeast, 1 teaspoon sugar and 1/2 cup water; let stand 10 minutes. Stir in remaining 1 1/2 cups water, milk, remaining sugar, egg and butter. Add 3 cups flour and salt. Using a paddle attachment, blend on low speed for 30 seconds. Beat on medium speed for 3 minutes.
Switch to dough hook attachment. Gradually stir in enough remaining flour to make a soft dough. Knead until smooth and elastic, about 5 to 7 minutes.(NOTE: For hand mixing: following above steps, mix ingredients in large mixing bowl using a wooden spoon or dough whisk. Knead on floured surface until smooth and elastic.) Cover; let rest in warm place for 10 minutes.
Punch dough down. Place on lightly floured surface; divide into four equal pieces. Cover 3 pieces with tea towel.
Roll or pat one dough into a 14x7-inch rectangle. Starting with shorter side, roll up tightly, pressing dough into roll. Pinch edges and taper ends to seal. Place seam down in prepared loaf pan. Repeat with remaining 3 pieces. Cover and let rise in warm place until doubled in size, about 45 minutes.
Preheat oven to 400°F. Bake loaves 25 to 30 minutes, until lightly browned and bread sounds hollow when tapped. Remove from pans and cool on wire rack.