Dissolve the active dry yeast and 1/4 teaspoon granulated sugar in 1/4 cup of warm water (110 degrees F). Let it stand to proof for about 5 minutes. It should be foaming on the top.
In a large bowl of a stand mixer combine 1 cup of hot water, 1 tablespoon of granulated sugar, kosher salt, and olive oil. Add 1 1/2 cups of bread flour mix on low with the paddle attachment. Add the yeast mixture and mix on low to combine.
Add the remaining 1 3/4 cup of bread flour and mix on low until well combined. The dough will be very sticky at this point. Scrape down the sides of the bowl, cover, and let rise for 1 hour. (This bread dough is very soft but should be easy to handle. Resist adding more flour.)
Prepare a baking sheet with parchment paper.
After the one-hour rise time, scrape the dough out onto a well-floured work surface or large cutting board. Gently flatten the dough into a rectangle. Start rolling the dough toward you jellyroll style, gently seal, fold in the two corners after each roll. Seal the seam and tuck the ends under.
Place seam side down on the parchment-lined baking sheet. Cover and let rise another 30 minutes.
Preheat the oven to 375 degrees F. Whisk a large egg with 1 tablespoon of water.
After the 30 minute rise brush the loaf with the egg wash and using a bread lame or sharp knife make three or four cuts diagonally across the top of the loaf.
Bake for 20 to 25 minutes until golden brown. Allow the bread to cool for at least 15 minutes before slicing.