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Cheese Onion-Batter Bread

1/4 cup chopped onion
1 tsp butter
3 cups bread flour
1/4 cup sugar
1/2 tsp salt
1/2 cup butter
2 1/4 tsp dry yeast (1 pkg)
1/4 cup warm (110 - 115) water
1 cup lukewarm milk
1 egg, beaten
1 cup shredded cheddar cheese

Sauté onion in 1tsp. butter until softened. Set aside.
In mixing bowl, combine flour, sugar and salt.
Cut in 1/2 cup butter until mixture resembles coarse crumbs.
In glass measuring cup, dissolve yeast in warm water.
Add to flour mixture along with milk, egg, cheese and sautéed onion.
Beat with spoon until well blended.
Cover; let rise for one hour.
Stir down batter and pour into a well-greased 9x5x3" loaf pan.
Cover; let rise for 45 minutes.
Bake in a preheated 350 degree oven for 35 to 45 minutes. (If browning too quickly, cover loosely with foil during final 10 to 15 minutes baking time.)

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