Activate the Yeast:
In a small bowl, warm the milk and water to about 110°F (43°C). Add the sugar and yeast, stir, and let it sit for 5-10 minutes until frothy.

Prepare the Dough:
In a large bowl, mix the flour and salt. Create a well in the center and pour in the yeast mixture, eggs, and vanilla extract. Stir until the dough comes together.

Knead the Dough:
Turn the dough out onto a floured surface and knead for 8-10 minutes until smooth. Gradually incorporate the butter, one tablespoon at a time, until fully absorbed into the dough. The dough should be soft and slightly tacky.

First Rise:
Place the dough in a greased bowl, cover with a damp towel or plastic wrap, and let it rise in a warm place for 1-2 hours or until doubled in size.

Add Chocolate Chips:
Punch down the dough gently to release air. Fold in the chocolate chips until evenly distributed.

Shape the Bread:
Roll the dough into a rectangle (about 12×8 inches) and tightly roll it up from one edge. Pinch the seams and place the dough into a greased loaf pan.

Second Rise:
Cover the loaf with a towel or plastic wrap and let it rise for 45 minutes to 1 hour, or until it’s risen slightly above the edge of the pan.

Egg Wash:
Beat the egg and brush it over the top of the dough for a golden, glossy finish.

Bake the Bread:
Preheat your oven to 350°F (175°C). Bake the bread for 30-35 minutes, or until golden brown. Tap the bottom to check for a hollow sound.

Cool and Slice:
Let the bread cool in the pan for 10 minutes, then transfer to a wire rack to cool completely before slicing.