Pour the oats and butter into a mixing bowl. Pour the warmed milk on top. Stir the ingredients together and set aside until the mixture is at room temperature (1-2 hours).
In a separate large mixing bowl, add the warm water and yeast. Stir and let the mixture sit for 3-5 minutes so that the yeast can begin to activate.
Add in the honey and salt. Stir to combine with a hand held mixer or stand up mixer.
Add the oatmeal mixture and egg to the yeast mixture and beat until combined.
Then reduce the mixer speed down to low, slowly add in the flour until just combined. Mix in the salt.
Knead the dough for a few minutes until the dough is smooth and elastic.
Place the dough in a greased bowl. Cover and allow it to rise until it doubles in size (approximately 1 hour).
Carefully punch the dough down into the bowl. Remove from the bowl to a lightly floured surface. Knead the dough slightly and then shape the dough into a loaf shape and place it in the prepared loaf pan.
For the topping, whisk the egg and water together and brush it on top of the loaf. Sprinkle the dry oats on top.
Cover the dough in the pan with greased plastic wrap and let it rise until it doubles in size again (approximately 45-60 minutes). Watch it closely and make sure that the dough does not rise over the top of the pan.
Preheat the oven to 375 degrees Fahrenheit while the dough is rising.
Remove the plastic wrap from the top of the pan. Bake for 30-40 minutes until the top of the bread is browned and when you hear a hollow sound when you lightly tap on the top of the bread.
Let the bread cool in the pan for 10 minutes and then carefully remove it from the pan to cool on a wire rack until it cools completely.
Then the bread is ready to slice, serve and enjoy!
Notes
The bread will keep in an airtight container at room temperature for up to 3 days.