In a large mixing bowl or the bowl of a stand mixer, combine the warm water (ensure it's between 40-46°C or 105-115°F – too hot will kill the yeast, too cool won't activate it), active dry yeast, and granulated sugar. Stir gently to combine. Let stand for 5-10 minutes until the mixture is foamy. This indicates the yeast is active.

Add the all-purpose flour and salt to the yeast mixture. If using a stand mixer, attach the dough hook. If mixing by hand, use a sturdy spoon or spatula.

Mix on low speed (or stir by hand) until a shaggy dough forms. Add the softened unsalted butter. Continue mixing on low speed (or knead by hand) for 8-10 minutes, or until the dough is smooth, elastic, and pulls away from the sides of the bowl. It should be slightly tacky but not stick to your fingers.

Lightly grease a clean large bowl with a little oil or cooking spray. Place the dough in the bowl, turning it to coat all sides. Cover the bowl tightly with plastic wrap or a damp kitchen towel. Let the dough rise in a warm place for 1 to 1.5 hours, or until doubled in size.

Gently punch down the risen dough to release the air. Turn the dough out onto a lightly floured surface. Shape the dough into your desired loaf shape (typically a rectangle about 20cm x 30cm or 8 x 12 inches, then rolled tightly into a log).

Grease a standard 23cm x 13cm (9x5 inch) loaf pan. Place the shaped dough seam-side down into the prepared pan. Cover the pan loosely with plastic wrap or a clean kitchen towel.

Let the dough rise again in a warm place for 45-60 minutes, or until it has risen about 2.5cm (1 inch) above the rim of the pan. Preheat your oven to 190°C (375°F) during the last 15 minutes of the second rise.

In a small bowl, whisk together the egg and 1 tbsp (15ml) of water to make an egg wash. Gently brush the top of the loaf with the egg wash. This will give the bread a beautiful golden-brown color and a slight sheen.

Bake in the preheated oven for 30-40 minutes, or until the crust is deep golden brown and the internal temperature of the bread reaches 93-99°C (200-210°F). If the crust is browning too quickly, you can loosely tent the loaf with aluminum foil.

Carefully remove the bread from the loaf pan and place it on a wire rack to cool completely before slicing. This is crucial for the bread's texture and prevents a gummy interior. Slicing hot bread can cause it to collapse.