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Stir yeast packet into a warm to touch milk and sugar and allow the yeast to bloom for about 5 minutes. When it starts to bubble and foam, it means the yeast is active and ready to be used.
In a large bowl, mix flour and salt, then create a small well in the middle and pour in the milk and yeast mixture.
Mix one egg with warm water to warm up cold egg, and add to the flour.
Using your wooden spoon or spatula, start combining everything. Once combined using your hands, begin to knead the dough; when it starts to pull away from the sides of the bowl, it is ready to rest. I knead for about 5 minutes. If the dough is too sticky, add more flour, a couple of tablespoons at a time, and vice versa, add a splash more water if it's too dry—drizzle olive oil and tap/glaze all over the dough.
Cover the bowl with a large kitchen towel and let it rise until it doubles in size. It takes an hour or two hours, sometimes less if the house is warmer. (RISE 1)
Uncover the dough and give it a few pokes with your finger. If the dough has risen properly, it should indent under the pressure of your fingers and slowly deflate. At this point, you could place the dough in the baking pan, but following step the bread turns out so much better.
Using your hand, fold the dough—light pressure-kneading. Add more flour until it comes together. Cover and let it rise for one more hour. You may leave it for up to 3 hours. You do not have to wait for the second rise but the bread turned out so good. (RISE 2- optional). If you choose not to do this second rise then just move to step 10.
Preheat the oven to 450 F
Once the dough has doubled once again, knead it again to shape it.
Place the shaped dough into a lightly greased or parchment-lined Dutch oven, and let it rise for the second time at the warmer area. Sprinkle the top with a bit of flour and score lines on top. As the bread bakes, it will expand, and those scored lines will become more visible. (RISE 3)
Bake for about 45 to 50 minutes, removing the lid completely 8-10 minutes before the bread is done. This way, it will get a deeper color and crispier.
Remove bread from a Dutch oven, wrap it in the kitchen towel and let it cool for at least 30 minutes before slicing. Trust me on this one. If you cut it when the bread is hot, it will become sticky inside, so better wait for just a bit.