In saucepan, heat milk, water and butter (or shortening) until warm. Add to flour mixture. Add egg. Blend at low speed until moistened; beat 3 minutes at medium speed. By hand, gradually stir in enough remaining flour to make a soft dough. Knead on floured surface until smooth and elastic, 5 to 8 minutes. Place dough in lightly oiled bowl and turn to grease top. Cover; let rise until dough tests ripe.