Combine all ingredients in the pan in the order listed and select white bread; push start You can bake it following your machine's instructions OR follow the directions below.
Remove it from the bread maker after the manual mode stops, (second rise); and then braid and rise again; then put an egg wash over the challah.
Egg wash: One egg beaten with an equal amount of water. Brush on liberally before baking and then once during the bake. You can sprinkle on seeds of your choice (sesame or poppy) after the first `wash'.