1/2 c. milk
1/2 c. water
1 tbsp. butter
2 1/2 to 2 3/4 c. all-purpose flour, divided
1 pkg. dry yeast
1 tbsp. sugar
1 1/2 tsp. salt
1/2 c. (2 oz.) shredded Cheddar cheese
1 egg
1 tbsp. plus 1 tsp. parsley flakes
3/4 tsp. caraway seeds
1/2 tsp. dried whole tarragon

Combine first 3 ingredients in a small saucepan. Bring to a boil; remove from heat and cool to lukewarm (105 to 115).

Combine 1 cup flour, yeast, sugar and salt in a large bowl. Add milk mixture; beat 2 minutes with an electric mixer. Add cheese, egg, parsley flakes, caraway seeds and tarragon; beat 2 minutes. Gradually stir in enough remaining flour to make a stiff dough.

Cover and let rise in a warm place (85), free from drafts, 1 hour or until doubled in bulk.

Stir dough down. Spoon into a greased 1 1/2 quart round baking dish. Bake at 350 for 40 minutes or until loaf sounds hollow when tapped.