Whisk the warm water, warm milk, whole packet of yeast, and granulated sugar together in a large bowl. Cover and allow to sit in a warm place for 5 minutes.
Add butter, salt, and 1 cup of flour and mix with a spatula or wooden spoon. Once incorporated add another cup of flour. Mix that in. Add the last 1 1/3c. of flour into the mix and stir. There might still be chunks of butter, but that is ok.
Knead on a floured surface for about 8 minutes adding flour as needed to prevent the dough from sticking to the surface. If dough becomes too sticky, add about 1 tsp. of flour at a time.
Form into a ball.
Time for the first rise. Lightly grease a mixing bowl with either olive oil or non-stick spray and cover the dough in a very light coating of oil. Place dough inside the bowl and cover with plastic wrap and a clean tea towel. Place somewhere warm and let rise for about 2 hours or until doubled in size.
When the dough is finished rising, punch the dough down to release any trapped air inside of the dough. Pour dough out onto a lightly floured workspace. Lightly flour a rolling pin and your hands. Roll dough out into the shape of a rectangle. About 8”x15”. Make sure that width can fit into your loaf tin. Eye up the dough width with your loaf pan.
Once the dough is rolled out, into a rectangle roll up the dough into an 8” log and place into your greased loaf tin.
This is your second proofing. Cover the dough with either plastic wrap, aluminum foil, or a clean, tea towel and place somewhere warm for 1 hour. The dough should rise about an inch higher than the loaf pan.
Preheat oven to 350℉/175℃/Gas Mark 4. Use the lowest oven rack in your oven to prevent the top of your loaf of bread from burning.
Bake your bread for about 30-34 minutes.
Remove from oven and let cool in the pan before slicing.
Slice and enjoy!