In a large mixing bowl, mix together 1½ cups of the flour and yeast. Put the milk, ¼ cup of the sugar, salt, ¼ cup butter and water into a microwave safe container; heat in microwave to 120º. Lightly beat egg and add to flour mixture along with milk mixture. Beat with a wooden spoon until mixture becomes smooth. Add remaining flour a little at a time, until mixture is no longer sticky. Place on a floured board and knead 3-5 minutes, until smooth and elastic.