In a small bowl, mix yeast and water and set aside.
In a small saucepan, combine flour, water, and milk and whisk until smooth.
Heat over low heat, stirring frequently until a paste forms. This is called tangzhong.
Remove from heat. In a large mixer fitted with a dough hook, combine flour, sugar, salt, milk, egg, yeast, and tangzhong paste.
Beat on low for five minutes until dough forms. (At this point, my dough was a little sticky).
Add butter to the dough, one tablespoon at a time, and beat on medium until mixed well and the dough is smooth.
Cover bowl with plastic wrap and let stand for 1.5 hours or until double in size.
Remove plastic wrap and divide the dough into 9-10 pieces, using flour if dough is extra sticky.
Shape dough into balls and place into a greased 10" springform cake pan.
Cover and let the dough rest for an additional 45 minutes or until double in size.
Remove plastic wrap and discard.
Beat together egg and water and use a pastry brush to top the dough with egg wash.
Bake for 20 minutes at 350.
Remove from oven and top hot bread with garlic butter.
What is Milk Bread? Japanese milk bread is a soft delicious bread whose method of baking creates perfect buns, rolls, and loaves. Once you understand how to make it, there is no turning back.This bread goes by many names including Hokkaido milk bread, Shokupan, or Milk Bread. The distinct texture of milk bread can be eaten alone or with a burnt butter recipe or jelly. Store leftovers in a ziplock baggie.