Sift flour into a large bowl. In the center of the flour create a well (pushing flour to the sides).
In a saucepan, combine the water, milk, and 2 Tbsp butter. Heat until very warm. Pour into the center of the flour.
Add salt to water, lightly stir. Sprinkle yeast over water and sprinkle sugar over yeast. Let the yeast active and become foamy (about 3-5 minutes).
In a small bowl, whisk the egg. Once yeast is foamy, add the egg to the water and whisk until egg is incorporated. With your hand, slowly start adding flour to the water as you continue mixing. Mix until dough is lumpy. Transfer dough onto surface. Knead 4-6 minutes until dough is smooth and flour is well combined.
Lightly grease a bowl with baking spray or butter. Place dough into the bowl. Cover bowl with plastic wrap and a kitchen towel to keep the dough warm. Let the dough rise 1 hour, or until the dough doubles in size.
Gently, divide dough into three equal parts. Roll out each part into about 3” x 12” sizes. It’s easiest to roll out by starting with both hands in the middle of the rope, then pull to sides as you roll. Repeat until all parts are the same in size. Generously spread butter between three parts. Add herbs and roll tightly.
Braid strands, pinching and tucking ends under braid. Once braided, stretch the middle out gently. Brush top of braid with butter and cover loosely with plastic wrap (I like to lightly spray the plastic wrap with cooking spray so it doesn’t stick to the dough as it’s removed.) Let the braid rise another 30-45 minutes, the braid will almost double in size. Sprinkle garlic powder over top of the braid.
Preheat oven to 375°F.
Bake braid 25-30 minutes, until golden brown. Once bread lightly cools, brush with remaining butter. Cool bread completely before slicing. Add any remaining herbs on top of braid for extra appeal, optional.