In bread machine pan, place the first 7 ingredients in order suggested by manufacturer. Select dough setting (check dough after 5 minutes of mixing; add 1 to 2 tablespoons of water or flour if needed)., When the cycle is completed, turn dough onto a floured surface. Divide in half. Shape each portion into a ball; flatten slightly. Place in 2 greased 9-in. round baking pans. Cover and let rise until doubled, about 45 minutes., Beat egg and water; brush over the dough. Sprinkle with Italian seasoning if desired. Bake at 350° until golden brown, 20-25 minutes. Remove from pans to wire racks to cool.