Get egg and ube jam out of fridge for 30 minutes to get to room temperature.
In the meantime, prepare breadcrumbs by finely grinding stale bread in food processor. Crumbs should be texture of coarse sand.
In a stand mixer bowl, mix flour, sugar, and salt together.
Pour warm milk, oil, and egg. Mix gently on low, or with large spoon or spatula. Add yeast and mix gently.
Add ube jam and 1-2 drops of ube extract, then mix on medium with dough hook. Once dough starts coming together into a ball, set mixer to high. Check after 10 minutes if dough passes windowpane test. Continue mixing until dough passes windowpane test. This may take about 20 minutes.
Form the dough into a ball. Grease large bowl with oil and place dough back inside. Lightly coat the top and sides of the dough with oil as well, then cover with damp kitchen towel or plastic wrap. Leave it to rise in a warm spot for an hour.
Punch the dough down and divide into 12 pieces. Roll each piece into smooth balls.
Roll each piece into the breadcrumbs, making sure all sides are covered.
Place the breadcrumb covered balls on a baking sheet and leave at least 1 1/2 inch in between. Alternately, you can place them with 1/2 inch space in between if you want your bread to tear away. Cover them and let rise for 30 minutes. Set your oven to pre-heat at 350F.
Bake pandesal for 20 minutes at 350F or until slightly browned. Remove and serve while fresh and hot from the oven!