Bring water to a boil in small saucepan. Remove from heat. Stir in sugar & butter. When mixture has cooled down to 110 to 115 degrees, add yeast. Mix well. Let stand 10 minutes.

Combine Buttermilk, egg, dill, & salt in a large bowl until well blended. Add yeast mixture. Mix well. Add flour 1/4 cup at a time, mixing well after each addition, until dough is no longer sticky.

Knead dough until smooth & elastic, about 5 minutes, adding additional flour if dough is too sticky. Form dough into ball. Cover. Let rise in a warm place until double in size, about 1 hour.

Preheat oven to 350 degrees. Grease 8x4 loaf pan. Punch down dough. Shape into a loaf. Place in prepared pan. Bake until golden, about 30 to 35 minutes.