How to make the yeast dough: In a large bowl, mix together water, sugar, and yeast. Set aside for 5 to 10 minutes or until the mixture becomes bubbly and foamy on top. Add the beaten egg and milk to the yeast mixture. Mix to combine slightly.
Add about half of your flour (1 and 3/4 cups) along with the salt to the wet ingredients. Mix together until you get a thick and sticky dough. Add the melted butter to the wet dough along with the rest of the flour. Using a wooden spoon or a mixer fitted with a dough hook attachment on medium speed, mix the ingredients until they start to come together into a rough ball of dough. If working by hand, knead the dough by hand for 8 to 10 minutes, or until you get a smooth and slightly tacky ball of dough. Add flour as needed if the dough is too sticky. If using a mixer, knead the dough on medium speed for 5 to 6 minutes, or until smooth and tacky. Again, adding flour when needed. The dough should not stick to the sides when it's done, but it may stick slightly on the bottom of the bowl.
Cover the dough with plastic wrap or a tea towel. Set aside in a warm place to rise for 45 minutes to 1 hour, or until about doubled in size.
How to make the garlic butter spread: In a medium sized bowl, combine butter, parsley, garlic, and salt. Mix together until you get a thick, spreadable paste. Set aside until ready to use.
How to shape the garlic bread: Once the dough has finished rising, turn it out onto a large, lightly floured cutting board. Roll the dough out into a 9x14 inch rectangle. Spread the garlic butter spread onto the surface of the dough, leaving about a 1/4 inch border without any filling to prevent it from getting pushed out when we shape it.
Working on the long side of the dough, roll it up tightly into a tube. Pinch the seams of the dough to seal. Cut the dough in half lengthwise down the center. Turn each half facing up to reveal the layers of garlic butter. Starting from one end, press the 2 halves together to seal. Twist the garlic bread by turning one half of the dough over the other, repeating until you reach the other end of the dough. Pinch the other end of the dough together, and fold down and under the dough to hide the seam. (For a visual, check out the video right above the recipe to see how to shape braided garlic bread)
Transfer your shaped garlic bread into a 9x13 inch baking dish lined with parchment paper. Cover the dough and let it rise in a warm place for 30 minutes, or until about doubled in size.
Bake the dough: Preheat your oven to 350°F. Uncover dough and bake in the center of the preheated oven for 25 to 30 minutes, or until a light golden brown on top. Remove the garlic bread from the oven, and allow the bread to cool enough to handle. Slice and serve warm!