1. In a large bowl, combine the sugar, salt, yeast, and flour.

2. In a small saucepan, heat the milk and butter over medium heat until very warm, about 125°F.

3. With a wooden spoon, gradually stir the warmed liquid into the dry flour mixture.

4. Stir until completely combined, adding more flour by the tablespoon, if necessary, to make a soft dough.

5. Turn dough out onto a lightly floured surface and knead until smooth, about 10 minutes.

6. Shape the dough into a ball, and place in a large greased bowl.

7. Brush lightly with olive oil.

8. Cover with plastic wrap and let rise in a warm place until doubled, about 30 minutes.

9. Preheat the oven to 375°F.

10. Grease a large baking sheet.

11. In a small bowl, beat the egg and water until blended.

12. Punch down the dough and place on the baking sheet.

13. Shape into a 14-inch-long loaf.

14. Brush the top of the bread with the egg and water mixture and sprinkle with sesame seeds.

15. Cut two diagonal slashes on top of the loaf.

16. Bake 25 minutes to 30 minutes in the preheat oven, or until the bread sounds hollow when tapped on the bottom.

17. Cool on a wire rack.