Sprinkle yeast over 1/4 cup of the warm water (105°) in a glass measuring cup. Stir in 1 teaspoon of sugar. Let stand for 10 minutes. Mixture will be foamy.
Stir together 3-1/2 cups of flour, salt, rosemary, minced onion, cayenne pepper and remaining teaspoon sugar.
Pour yeast mixture into flour mixture. Add remaining 1 cup warm water and the olive oil. Stir to form a ball. Mix together the cheeses and add 3/4 cup to the dough.
Turn out onto a well-floured surface. Knead for 10 minutes, adding additional flour as needed until dough is smooth and elastic.
Lightly grease a large bowl with olive oil. Place dough in bowl and turn to coat. Cover with plastic wrap and let rise in a warm place for 1-1/2 hours, until doubled in size. Punch dough down.
Roll out dough into a 20 x 8-inch rectangle on a lightly floured surface. Roll up from a short side. Fold ends under loaf and place seam-side down in a greased 9 x 5 x 3-inch loaf pan. Loosely cover with plastic wrap and let rise in a warm place for an additional hour.
Heat oven to 400 degrees. Brush top of loaf with egg wash. Sprinkle with the remaining cheese.
Bake at 400 degrees for 35 minutes or until loaf sounds hollow when tapped. Remove from pan to rack to cool.
Wrap cooled loaf in holiday plastic wrap and tie with festive ribbon. Makes 12 servings.
