Pepper Cheese Bread

1-1/2 cups finely diced green peppers
3 tablespoons olive or vegetable oil, divided
2 tablespoons active dry yeast
1/2 cup warm water (110° to 115°)
1 teaspoon sugar
1 cup milk
2 tablespoons honey
1-1/2 teaspoons salt
1-1/2 cups (6 ounces) shredded cheddar cheese
3 eggs
4-1/2 cups all-purpose flour
1/2 cup wheat germ
1 tablespoon water

In a skillet, saute peppers in 1 tablespoon oil for 15 minutes or until tender; set aside. In a mixing bowl, dissolve the yeast in warm water. Stir in the sugar; let stand for 5 minutes. In a saucepan, heat the milk, honey, salt and remaining oil to 110°-115°.

Remove from the heat; stir in the cheese. Stir in 2 eggs and reserved peppers; add to yeast mixture. Add 2 cups flour and wheat germ; beat until smooth. Sir in enough remaining flour to form a soft dough. Do not knead. Cover and let rise in a warm place until doubled, about 1 hour.

Punch dough down; spoon into two greased 8-in. x 4-in. x 2-in. loaf pans. Cover and let rise until doubled, about 1 hour. Beat water and remaining egg; brush over loaves. Bake at 375° for 25-30 minutes or until golden brown. Makes 2 loaves.