Dissolve the yeast in 1/4 lukewarm water and let sit 10 minutes.
Warm the milk, 1 cup of water and butter together (until the butter melts). Pour the mixture in to a large mixing bowl. Stir in sugar and salt, mix well.
Add yeast, however if the milk mixture is too warm, allow it to cool before adding the yeast. Add flour slowly, stirring constantly.
Place the dough onto a lightly floured surface and knead for 10 minutes, until smooth and elastic.
Place the dough in a lightly greased bowl, turning the dough so that all sides are greased. Cover with a damp cloth and let rise for 1 1/2 hours or until double in bulk.
After rising, punch down the dough and knead for a few minutes. Shape into 2 or 3 loaves and place in greased loaf pans.
Let rise until double in bulk.
Bake at 450F for 10 minutes, then reduce heat to 350F and continue baking for 35-45 minutes until golden.
Notes
I decided to make my own small modifications, such as swapping out some whole wheat flour for the white flour. I used 1 cup of whole wheat flour and 5 1/2 cups of white flourYou can make 3 smaller loaves instead of 2 larger loaves.This bread will keep for up to 3 days at room temperature or 5 days in the refrigerator.You may also freeze the bread, once baked, well covered in plastic wrap.