In a large mixing bowl, combine the flour, sugar, salt, dried Italian herbs, and instant yeast. Mix well to combine all the dry ingredients.
Add the warm water and olive oil to the dry ingredients. Stir with a wooden spoon or spatula until a rough dough forms.
Turn the dough out onto a floured surface and knead for about 5-7 minutes until smooth and elastic.
Place the dough in a greased bowl, cover it with a clean kitchen towel, and let it rise in a warm place for about 1 hour, or until it has doubled in size.
Once risen, punch down the dough and knead in the shredded mozzarella and grated Parmesan cheese until evenly distributed.
Shape the dough into a round loaf and place it on a baking sheet lined with parchment paper. Cover it again with the towel and let it rise for another 30 minutes.
Preheat the oven to 375°F.
Beat the egg in a small bowl and brush it over the top of the loaf for a golden finish.
Bake in the preheated oven for 25-30 minutes, or until the bread is golden brown and sounds hollow when tapped on the bottom.
Allow the bread to cool on a wire rack for at least 10 minutes before slicing.