In a small bowl combine the yeast, warm water, and 1 tablespoon sugar. Set aside to dissolve yeast.
Meanwhile, in a medium saucepan combine cottage cheese, 1 tablespoon sugar, the dried onion, the 1 tablespoon butter or margarine, the 2 teaspoons dillseed, the salt, and baking soda. Heat and stir just until mixture is warm (120 degrees F to 130 degrees F) and butter or margarine almost melts. Remove from heat.
In a large bowl combine the dissolved yeast mixture, cottage cheese mixture, and egg. Using a wooden spoon, stir in as much of the flour as you can.
Turn the dough out onto a lightly floured surface. Knead in enough of the remaining flour to make a moderately soft dough that is smooth and elastic (3 to 5 minutes total). Shape dough into a ball. Place dough in a lightly greased bowl, turning once to grease surface of dough.
Cover and let dough rise in a warm place until double in size (50 to 60 minutes). Punch dough down. Turn dough out onto a lightly floured surface. Shape dough by patting or rolling it into a 7-inch round loaf or an 8x4-inch loaf.
Place the round-shaped dough into a greased 1-1/2-quart casserole dish or the loaf into a lightly greased 9x5x3-inch loaf pan. Cover and let the dough rise in a warm place until nearly double in size (30 to 40 minutes). Brush dough with the melted butter or margarine. Sprinkle brushed surface with the 1/2 teaspoon dillseed.
Bake in a 350 degree F oven for 40 to 45 minutes or until golden brown and bread sounds hollow when lightly tapped. (If necessary, cover the bread loosely with foil the last 15 minutes of baking to prevent overbrowning.)
Immediately remove bread from dish or pan. Cool on wire rack. Slice bread to serve. Makes 16 servings.