Combine 1 c. flour, sugar, salt, and yeast. Beat in water and butter. Beat for 2 minutes more. Add egg and 3/4 c. flour; beat 2 minutes. Add remaining flour. On lightly floured surface, knead dough until smooth and elastic. Shape dough into ball. Place dough in large greased bowl. Cover and let rise until doubled in size, about 1 hour.
Punch down dough. Turn onto lightly floured surface; cover, and let rest 15 minutes. Grease a large baking sheet.
On lightly floured surface, roll dough out into large rectangle. Spread jam down the center of the dough, leaving 3 inch border on all sides.
Use a pastry wheel to cut dough on both sides of filling, started on outside edge, into 1 inch strips, just touching the jam. Fold dough down, alternating sides, to make a braided design. Place on baking sheet, cover, and let rest 1 hour.
Preheat oven to 350. Bake until golden for about 20 minutes. Let cool for 15 minutes, then serve warm.