Make the dough: In the bowl of a stand mixer, whisk together 1½ cups (190g) flour, sugar, salt, and yeast with a whisk or wooden spoon.

In a medium saucepan, heat milk, butter, and water over medium heat until an instant-read thermometer registers 120°F(49°C) to 130°F (54°C). Add warm milk mixture to flour mixture; using the paddle attachment, beat at medium speed until combined. Add egg, beating until combined. With mixer on low speed, gradually add remaining 1½ cups (190g) flour, beating just until combined and stopping to scrape sides of bowl.

Switch to the dough hook attachment. Knead at low speed until a soft, elastic, tacky dough forms and pulls away from sides of bowl, about 8 to 10 minutes. Turn out dough onto a clean surface, and shape into a smooth round.

Lightly spray a large bowl with cooking spray. Place dough in bowl, turning to grease top. Cover and let rise in a warm, draft-free place (75°F/24°C) until almost doubled in size, about 30 to 45 minutes.

Punch down dough; let stand for 5 minutes. Turn out dough onto a lightly floured surface, and roll into a 16×10-inch oval; transfer to a large piece of parchment paper. Using a small knife or bench scraper, lightly score a rectangle into dough, leaving a 1½-inch border on short sides and 3-inch border on long sides.

For filling: In a small bowl, stir together ricotta, Cheddar, egg, salt, black pepper, za’atar or thyme, and garlic powder until well combined. Spread evenly onto dough within scored rectangle; sprinkle bacon and green onion onto cheese mixture.

Cut long sides of dough into 1-inch-wide strips from edge of dough to filling. At each short end, trim dough to width of filling (cutting out corners); fold each end over filling. Discard dough scraps. Starting on left side, stretch and then fold top strip over filling, ending just below opposite top strip. Repeat with top strip on right side. Continue pattern, alternating left and right, until you reach end.

Tuck and pinch last strip. (If dough is not sticking to itself, dab a little water onto dough to help it seal.)

Transfer dough on parchment to a large baking sheet. Cover and let rise in a warm, draft-free place (75°F/24°C) until puffed and indentation remains after lightly touching dough with your finger, about 30 to 45 minutes. (Alternatively, braided loaf can be covered and refrigerated overnight: cover pan tightly with plastic wrap to prevent dough from drying out, then place in refrigerator – don’t let rise before refrigerating. If refrigerated, let it come to room temperature and then rest until puffed before baking as directed.)

Preheat oven to 350°F (180°C).

Make the egg wash: In a small bowl, whisk together egg and water; brush on top and sides of dough.

Bake until golden brown and an instant-read thermometer inserted in center registers 190°F (88°C), about 30 minutes. Let cool on pan for 10 minutes. Remove from pan and let cool on a wire rack for 30 minutes.

Make the sauce: In a small microwave-safe bowl, heat honey and red pepper on medium until warm and fluid. Serve warm honey mixture with warm bread.