1. Add warm water and milk to the bowl of a mixer. Add sugar and yeast and mix to combine.
2. Once bubbles begin to appear on the surface, add egg, margarine or oil, three cups of flour, pudding mix, and salt.
3. Begin to mix on medium/low speed until everything is combined. Add remaining flour one-fourth cup at a time until the dough becomes a cohesive ball. Turn off the mixer and allow the dough to rest for two to three minutes.
4. Once resting period is up, resume mixing on medium speed for two to three minutes until dough becomes smooth and elastic.
5. Remove from the mixer, liberally dust your work surface with flour and knead the dough for a minute or so just to incorporate any loose flour and soften any lumps. Grease bowl and add dough. Cover and rise until double in size (this can take as fast as 30 minutes or up to two hours, depending on the heat in your kitchen).