Pepper Cheese Bread

1 1/2 cups finely diced green peppers
3 tablespoons olive oil, divided
2 tablespoons active dry yeast
1/2 cup warm water (115 degrees F)
1 teaspoon granulated sugar
1 cup milk
2 tablespoons honey
1 1/2 teaspoons salt
1 1/2 cups (6 ounces) shredded Cheddar Cheese
3 eggs
4 1/2 cups all-purpose flour
1 tablespoon water

In a skillet, sauté peppers in 1 tablespoon of the olive oil for 15 minutes, or until tender. Set aside. Dissolve the yeast in warm water. Stir in the sugar; let stand for five minutes.

Heat milk, honey, salt and remaining 2 tablespoons olive oil to approximately 115 degrees F. Remove from heat and stir in cheese. Stir in 2 eggs and reserved peppers; add to yeast mixture.

Add 2 cups flour; beat until smooth. Stir in enough remaining flour to form a soft dough. Do not knead.

Cover and let rise in a warm place until doubled, about one hour.

Punch dough down; spoon into two greased 8 x 4 x 2-inch loaf pans. Cover and let rise until doubled in size.

Beat water and remaining egg; brush over loaves. Bake at 375 degrees F for 25 - 30 minutes or until golden brown.

Makes 2 loaves.