Cheddar Jalapeno Bread

The dough is wetter than you're probably used to, but the result is great!
1 tsp active dry yeast
1 3/4 c plus 1 Tbs warm water (105-115 degrees)
4 c all purpose flour plus additional for dusting
1/2 tsp salt
1/4 c olive oil
3 Tbs chopped fresh jalapeno, including seeds and ribs
2 Tbs chopped fresh jalapeno without seeds or ribs
5 oz coarsely grated extra-sharp Cheddar ( about 1 1/2 c plus 2 Tbs)
1 1/2 oz finely grate Parmigiano -Reggiano (about 3/4 c)
1 large egg beaten with a pinch of salt.

Stir together yeast and 1 Tbs warm water in a small bowl; let mixture stand until foamy, about 5 min.

Mix together flour, salt, oil, yeast mixture, and remaining 1 3/4 c warm water in bowl of mixer at low speed until a soft dough forms. Increase speed to medium-high and beat 3 min more. Add jalapeno, 1 1/2 c cheddar, and 1/2 c Parmigiano-Reggiano and mix until combined.

Scrape dough down side of bowl into center, then sprinkle lightly with flour. Cover bowl with a clean kitchen towel (not terry) and let dough rise in a draft free place at warm room temp until doubled, about 2 to 2 1/2 hours.

Turn dough out onto well-floured surface and gently form into a roughly 11 x 8 rectangle with floured hands.

Fold dough into thirds ( like letter) with floured hands, pressing along seam of each fold to seal.

Put dough , seam side down, in an oiled 9 x5 loaf pan. Cover pan with same kitchen towel and let dough rise in a draft free place until dough completely fills pan and rises above it slightly, 1 to 1 1/4 hours.

Put oven rack in middle position and Preheat oven to 400.

Brush loaf with egg, then sprinkle with remaining cheeses down center of loaf.

Bake until bread is golden and sounds hollow when tapped on bottom, about 50 min to 1 hour. Run a knife along side of pan to loosen loaf, then remove pan to test doneness.

Return bread (not in pan) to oven and turn on its side, then bake 10 min more to crisp crust. Cool completely on rack.