Dissolve 1 teaspoon honey and yeast in 3 tablespoons warm water in small bowl. Let stand until foamy, about 5 minutes.
Combine flour, salt, butter, yeast mixture in 12-cup food processor fitted with dough or steel blade.
Combine 1-1/4 cups warm water, egg, remaining 1/4 cup honey. With machine running, pour honey mixture slowly through feed tube. When ball forms, process 1 to 2 minutes. If dough doesn't clear sides, add more flour, a tablespoon at a time. If too dry, add water, a tablespoon at a time.
Place dough in large greased bowl, turning to coat; cover loosely with plastic wrap. Bring large shallow pot of water to simmering. Remove from heat. Place rack on top. Place bowl with dough on rack; cover bowl with towel. Let rise 45 minutes to 1 hour or until doubled.
Grease two 8 x 4 x 3-inch loaf pans. Punch down dough; knead few turns. Divide dough in half; place half in each prepared pan. Place pans on rack over very hot water in pot; cover with towel. Let rise 45 to 55 minutes until doubled.
Preheat oven to 350°F. Slash loaves down center lengthwise with single-edge razor blade.
Bake in 350°F oven 30 minutes until hollow-sounding when tapped. Cool on rack for 30 minutes.