Combine flour, sugar, salt, and yeast in a large mixing bowl or stand mixer.
Whisk together the warm milk, warm water, egg, softened butter, cocoa powder, and red food colouring in a separate bowl.
Gradually add the wet ingredients to the dry ingredients, mixing until a dough forms.
Knead the dough on a floured surface (or with a dough hook in a stand mixer) for about 8-10 minutes, until smooth and elastic.
Place the dough in a lightly greased bowl, cover with a clean towel, and let it rise in a warm place for 1-2 hours, or until doubled in size.