Heat the milk in the microwave for 3 to 4 minutes until hot but not boiling. Watch it closely so it doesn’t boil over. Let it cool to room temperature, then stir in the yeast. Let it sit for a few minutes until foamy. If it doesn’t foam, your yeast is no good. Start over with fresh yeast.
In your stand mixer bowl, combine the milk and yeast mixture with the egg, oil, sugar, and salt. Whisk to combine, then add the flour. Mix on low speed until no dry flour remains.
Increase to medium speed and knead for 8 to 10 minutes. This will feel like a long time, but the dough will transform. Around the 6 to 8 minute mark, it should go from sticking to the bowl to becoming smooth and elastic.Scrape down the sides of the bowl around the 5 minute mark. If the dough feels too sticky, add flour one tablespoon at a time. Do not overdo it. A softer dough gives you softer bread.
Transfer the dough to an oiled bowl, cover with plastic wrap, and let it rise for about 45 minutes or until doubled in size.
Turn the dough out onto a lightly floured surface and divide it into two equal portions. Place one portion back in the bowl and cover while you work with the other.Divide the dough into 8 equal pieces. Gently roll each piece into a short log and place them side by side in a greased and parchment-lined 9.5 x 5.5-inch loaf pan. This is what creates that signature pull-apart Texas toast look.
Cover the pan with plastic wrap and repeat with the second loaf. Let both loaves rise for 30 to 45 minutes, until the dough reaches the top edge of the pan.
Preheat your oven to 350°F while the dough proofs. Whisk one egg with a tablespoon of water and lightly brush over the tops of the loaves. Sprinkle with sesame seeds for that classic Raising Cane’s finish.
Bake for 25 to 30 minutes, or until the tops are golden brown. For accuracy, check the internal temperature. It should read 190 to 200°F when fully baked.
Let the bread cool, then remove from the pan. Slice into thick pieces and follow the instructions below for toasting your Texas toast and serving with the dipping sauce.