In a large mixing bowl (or the bowl of a stand mixer), combine the warm milk and granulated sugar. Sprinkle the active dry yeast over the top and let it sit for 5-10 minutes until foamy, indicating the yeast is active.

Add the melted butter, egg, 2 cups of the flour, and salt to the yeast mixture. Mix on low speed with a dough hook (or by hand with a wooden spoon) until just combined. Gradually add the remaining 1 cup of flour, mixing until a shaggy dough forms.

Increase mixer speed to medium-low and knead for 5-7 minutes, or knead by hand on a lightly floured surface for 8-10 minutes, until the dough is smooth, elastic, and no longer sticky. Add a tiny bit more flour if necessary, but avoid adding too much.

Lightly oil a clean bowl. Place the dough in the bowl, turning once to coat. Cover the bowl with plastic wrap or a clean kitchen towel and let it rise in a warm place for 60-90 minutes, or until doubled in size.

While the dough rises, prepare the filling. In a medium bowl, combine the shredded cheddar cheese, finely chopped fresh parsley, chives, thyme, garlic powder, and black pepper. Stir well to combine.

Once the dough has doubled, gently punch it down to release the air. Turn the dough out onto a lightly floured surface. Using a rolling pin, roll the dough into a large rectangle, approximately 12x18 inches (30x45 cm).

Melt the 1/4 cup of butter for the filling. Brush about half of the melted butter evenly over the surface of the rolled-out dough, leaving a small border around the edges. Sprinkle the herbed cheddar mixture evenly over the buttered dough.

Cut the dough rectangle into six equal strips lengthwise (you'll have strips that are approximately 2x18 inches). Then, cut each strip into smaller squares or rectangles, roughly 2x3 inches. You should have about 30-36 pieces.

Stack 4-5 dough pieces on top of each other, creating small stacks. Lightly grease a 9x5 inch loaf pan. Arrange the stacks upright in the prepared loaf pan, packing them gently but not too tightly.

Cover the loaf pan with plastic wrap or a clean kitchen towel and let it rise in a warm place for another 30-45 minutes, or until the bread looks puffy and has nearly doubled in size.

While the bread is rising for the second time, preheat your oven to 375°F (190°C).

Bake for 25-35 minutes, or until the top is golden brown and the cheese is bubbly. If the top browns too quickly, you can loosely tent it with aluminum foil for the last 10-15 minutes of baking.

Once baked, remove the bread from the oven. If you have any remaining melted butter from the filling portion, or melt an additional tablespoon, brush it over the hot bread. This adds shine and extra flavor. Let the bread cool in the pan for 10-15 minutes before carefully transferring it to a wire rack.

Serve warm and let everyone pull apart their own cheesy, herbed pieces!