In a small bowl add warm milk, sugar and yeast. Cover and let it stand for five minutes or until it begins to foam.
In a stand mixer add flour and salt using the hook attachment start mixing on medium low speed. Slowly add in yeast mixture, 2 eggs (set one egg aside) and butter and continue to mix until dough is uniform. Dough will be sitcky but fairly smooth. About 3 minutes
Transfer dough to an oiled bowl and cover until it doubles the size. About 2 1/2 hours.
Punch dough down. Transfer to a floured surface and roll into a log or long strip witout overworking the dough.
Using a bench scraper or knife, cut dough into 16 equal pieces. It's helpful to cut dough log in half, and cut each half in to four and then eight. Or however you manage to end up with 16 equal sized pieces.
From here, simply tuck in each corner of each dough piece underneath it and shape it into a ball. Again without overworking it.
Line a 9 x 9 baking dish with parchment paper. Place each ball side by side in the baking dish and cover with a clean kitchen towel. Let dough rest for a second rise, until they have grown to take all the space in baking dish. How long it will take for the dough rise depends on the temperature of the kitchen. If too cold let dough rest near the warmest part of the kitchen, usually near the stove or in the oven.
When ready to bake, pre-heat oven to 375F degrees.
In a small bowl beat one egg and brush on to bread dough. Sprinkle tops with everything bagel seasoning and bake for 15- 18 minutes.