Activate yeast by mixing warm milk, sugar, and yeast. Let it sit for 5-10 minutes until frothy.
Combine flour and salt in a bowl. Add the yeast mixture, butter, and egg, then mix to form a dough.
Knead the dough for 8-10 minutes until smooth and elastic.
Let the dough rise in a greased bowl for 1-2 hours, covered, until doubled in size.
Shape the dough into a loaf and place it in a greased loaf pan. Let it rise again for 30-45 minutes.
Bake at 375°F (190°C) for 25-30 minutes until golden brown.
Cool on a wire rack before slicing.