In a large mixing bowl, combine 1-1/2 cups flour, sugar, yeast, salt and herbs. In a saucepan, heat the milk, water and butter to 120*-130*F. Add to dry ingredients; beat just until moistened. Add egg; beat until smooth. Stir in just enough remaining flour to form a soft dough.
Turn onto a floured surface; knead until smooth and elastic, about 4-6 minutes. Cover and let rest for about 10 minutes.
Divide dough into thirds. Shape each portion into a 15 inch rope. Place ropes on greased baking sheet and braid; pinch ends to seal and tuck under. Cover; let rise until doubled, about 20 minutes.
Bake at 375*F. for 25-30 minutes or until golden brown. Brush with melted butter. Combine herbs; sprinkle over bread. Then remove from pan to a wire rack to cool.