Place the milk in a microwave-safe medium bowl and microwave until hot. Add the oats over the hot milk, stir, and let cool to room temperature.

Combine warm water, honey, salt, and yeast in the bowl of a stand mixer. Stir and let sit for 10 minutes or until foamy.

Add the cooled oat mixture, flour, and butter to the yeast mixture. Knead with a dough hook on medium low speed for 6-8 minutes until smooth. Sprinkle in extra flour if needed.

Place the dough in a clean bowl coated with oil, cover with a towel, and let rise in a warm place until doubled, about 45 minutes.

Line a loaf pan with parchment paper and set aside. Transfer the dough to a clean surface and flatten it into a 14 x 10-inch rectangle, roll into a cylinder, and place seam-side down in the loaf pan. Cover with plastic and let it rise again until doubled, about 30 minutes.

Preheat the oven to 375°F. Brush the top of the dough with beaten egg and sprinkle with extra oats. Reduce the oven temperature to 350°F and bake for 50-55 minutes until golden brown and the loaf sounds hollow when tapped or reaches an internal temperature of 210°F.

Remove the bread from the pan and cool completely on a wire rack.