To the bread pan, with the mixing blade in, add water, egg, flour, salt, sugar, butter, dry milk, and yeast. *See Notes for mixing with mixer or by hand
With bread pan installed, close lid and choose “Knead and First Rise” or similar option on your breadmaker. This cycle takes 1 hour and 40 minutes for my machine. *See Notes for mixing with mixer or by hand
Once the dough is ready, remove from bread maker (or bowl) and gently knead 4-5 times.
Divide into 12 pieces and roll into balls. Place on parchment lined baking tray. Cover with a damp (clean) tea towel and allow to rise for 20 minutes. Reroll and flatten slightly, placing about half an inch apart on the parchment.
Spray lightly with water and allow to rise about 45-60 minutes, or until doubled in size. Preheat oven to 350F.
Beat together egg and water. Brush top with egg mixture and sprinkle with sesame seeds if using. Bake for 10-15 minutes or until golden brown.
*To make using a mixer, place all ingredients in the bowl of stand mixer. Mix on low using dough hook until dough is well mixed and coming away from the sides, about 10 minutes. Place in an oiled bowl and allow to rest for 90 minutes, or until doubled in size.*To make by hand, mix ingredients together well and knead about 15 minutes or until dough is smooth and no longer sticky. Place in an oiled bowl and allow to rest for 90 minutes, or until doubled in size.