In a small bowl, combine warm water, sugar, and yeast. Let it sit for about 5-10 minutes until frothy.
In a large mixing bowl, combine flour and salt. Make a well in the center and add the yeast mixture and olive oil. Mix until a dough forms.
Knead the dough on a floured surface for about 5-7 minutes until smooth and elastic. Place it in a greased bowl, cover with a clean towel, and let it rise in a warm place for about 1 hour or until doubled in size.
While the dough is rising, prepare the garlic herb mixture. In a small bowl, combine minced garlic, parsley, basil, oregano, black pepper, and red pepper flakes.
Once the dough has risen, punch it down and roll it out on a floured surface into a rectangle about 1/4 inch thick.
Spread the garlic herb mixture evenly over the dough, then sprinkle the mozzarella and cheddar cheese on top.
Starting from one long side, carefully roll the dough into a tight log. Pinch the seams to seal.
Place the rolled dough seam-side down in a greased loaf pan. Cover and let it rise for another 30 minutes.
Preheat the oven to 375°F. Brush the top of the loaf with the beaten egg.
Bake for 25-30 minutes or until golden brown and the bread sounds hollow when tapped. Let it cool in the pan for 10 minutes before transferring to a wire rack.