Sauté onion in 1 tablespoon hot oil in a small skillet over medium-high heat
4 to 5 minutes or until golden. Set aside.
Combine remaining 1 tablespoon oil, milk, and 1/4 cup water in a saucepan; heat
to 120 to 130 degrees F.
Stir together 3/4 cup bread flour, 1/4 cup rye flour, sugar, salt, and yeast
in a large mixing bowl; make a well in center of mixture. Stir in milk mixture with
a wooden spoon. Stir in remaining 1/2 cup rye flour, onion, and caraway seeds. Gradually
stir in enough remaining bread flour to make a stiff dough.
Turn dough out onto a floured surface, and knead until smooth (about 8 minutes).
Place in a well-greased bowl, turning to grease top. Cover and let rise in a warm
place (85 degrees F), free from drafts, 1 hour or until doubled in bulk.
Punch dough down, and turn out onto a lightly floured surface; let stand 5 minutes.
Shape into a loaf, and place into a greased 9 x 5-inch loaf pan.
Cover and let rise in a warm place, free from drafts, 45 minutes or until doubled
Stir together egg and 1 teaspoon water; brush over loaf. Bake at 375 degrees
F for 30 minutes or until loaf sounds hollow when tapped.
Remove from pan immediately,
and cool on a wire rack.