In a small bowl, combine the warm water, warm milk, sugar, and active dry yeast. Stir gently and let it sit for 5 to 10 minutes until the mixture becomes foamy.
In a large mixing bowl, whisk together the all-purpose flour and salt.
Make a well in the center of the flour mixture and pour in the yeast mixture, melted butter, and egg.
Using a wooden spoon or dough hook attachment on a stand mixer, mix until the dough comes together.
Turn the dough onto a lightly floured surface and knead for about 8 to 10 minutes until smooth and elastic. Alternatively, knead with a stand mixer for 6 to 7 minutes on medium speed.
Form the dough into a ball and place it in a lightly greased large bowl. Cover the bowl with a clean kitchen towel or plastic wrap and let the dough rise in a warm, draft-free area for 1 to 1 1/2 hours, or until doubled in size.
Once risen, punch down the dough to release the air. Turn it onto a lightly floured surface and shape it into a loaf by flattening it into a rectangle, then rolling it tightly from the short end.
Place the shaped dough seam-side down into a greased 9×5-inch (23×13 cm) loaf pan. Cover again with a towel or plastic wrap and let it rise for 30 to 45 minutes until it has risen about 1 inch above the rim of the pan.
Preheat the oven to 350°F (175°C).
Bake the bread for 28 to 32 minutes, or until the top is golden brown and the loaf sounds hollow when tapped.
Remove the bread from the oven and immediately transfer it to a wire rack to cool completely before slicing.