Hi Kim, shortening or other fats are not included when determining the hydration percentage of a bread recipe, however the milk and water would be included. It looks to me like the hydration percentage for this recipe is 300/357 =.84 X 100 = 84%. This seems quite high for an enriched dough, especially because the recipe also has an egg (which also adds moisture but isn't officially included in the hydration percentage). As far as converting this recipe to include a tangzhong starter, this blog post can help you get there. At quick glance it looks to me like you certainly wouldn't have to increase the hydration of this recipe, and you could simply deduct PJ's standard tangzhong ingredients (23g flour and 113g liquid) from the recipe ingredients in order to make a tangzhong starter. 

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