Dissolve yeast in warm water, set aside to bloom, about 10 minutes.
In a large bowl, cream the cottage cheese. Add sugar, onion, 1 tablespoon butter, egg and dried dill. Cream until smooth.
Add the flour, about 1/2 cup at a time, beating with each addition. Beat until well mixed and dough is stiff but not heavy.
Cover and let rise in a warm place until doubled, about 1-1/2 hours.
Punch down and put dough in a bread pan, or arrange in a round shape, on a greased cookie sheet. Let rise again, about an additional hour.
Bake for 30 to 45 minutes in a preheated 350°F oven. The bread is done, when tapped on the bottom, it sounds hallow.
Remove from the oven and while warm, brush the loaf with the remaining 1 tablespoon of soft butter. Sprinkle with coarse salt.