Prepare the Dough: In a large bowl, combine the milk, sugar, 1 egg, butter, and flour. Gradually add the water until a manageable dough forms. Knead for 1 minute and then incorporate instant yeast.
Let Stand: Cover the dough with a cloth and let it rest for 20 minutes. Knead again and allow it to stand for another 20 minutes. Repeat this process three times to achieve a soft and spongy texture.
Form the Braid: Divide the dough into three equal parts. Shape elongated strips by pressing from the center to the ends, and then braid the strips carefully. Let the braid rest for 10-15 minutes under a cover.
Paint and Bake: Place the braid on a baking tray. Beat the remaining egg with a few drops of water and gently brush it over the braid. Preheat the oven to 230°C, then bake for 30-35 minutes, reducing the temperature to 180-200°C halfway through.
Cool and Enjoy: Once golden brown and fully cooked, remove from the oven and let cool before serving.