Mix together the milk, water and yeast in a large bowl. Allow to rest for 5 minutes until it becomes bubbly. Measure flour by spooning and lightly leveling the top with a knife. Sprinkle flour over yeast mixture. Add egg, olive oil and salt to the bowl. Mix until a shaggy dough starts to form then knead for 6-8 minutes, until smooth. Place in an oiled bowl, cover, and let rise for 45 minutes to 1 hour, until doubled.