STIR YEAST AND SUGAR into water; let stand until foamy, about 5 minutes. For food processor fitted with metal blade or mixer with dough hook, put flour, milk powder, oil and egg or egg whites into bowl. Turn machine on and combine mixture. With machine running, slowly add yeast mixture. Mix until dough cleans sides of bowl. If dough is too sticky, add more flour by the tablespoon, working it in before adding more. If dough is crumbly and dry, add more water by the teaspoon, working it in before adding more. Once desired consistency is reached (moist but not sticky), mix dough until well kneaded, uniformly supple and elastic, about 40 seconds in food processor, about 6 minutes in mixer. If mixing by hand, put ingredients in large bowl. Mix well. Make well in center, pour in yeast mixture and work into ingredients, then knead on floured board until smooth and elastic, about 10 minutes.
Transfer dough to large plastic bag, squeeze out air and seal at top. Place dough in bowl. Let rise in warm spot until doubled, about 1 hour. Oil a baking sheet. Punch dough down and shape into smooth ball. Place smooth side up on baking sheet. Cover loosely with oiled plastic. Let rise in warm spot until doubled, about 40-50 minutes. Preheat oven to 375F. Fifteen minutes before baking, put rack in center of oven; dust dough top lightly with flour. Make a decorative slash across the top. Bake until bread is well browned and sounds hollow when rapped on bottom, about 30-35 minutes. Immediately remove from pan and cool on rack. Makes 1 Loaf