Prepare the Dough: In the bowl of your stand mixer fitted with a dough hook or paddle attachment, whisk together the warm water, warm milk, yeast, and sugar. Cover and let sit for 5 minutes. Add the butter, salt, and 1 cup of flour. Mix on low speed for 30 seconds, then scrape down the sides of the bowl. Add another cup of flour and mix on medium speed until mostly combined (some butter chunks may remain). Add the remaining flour and continue mixing on medium speed until the dough comes together and pulls away from the sides of the bowl, about 2 minutes. If you don’t have a mixer, use a large wooden spoon or silicone spatula, though it will require some effort!
Knead the Dough: Keep the dough in the mixer and knead for an additional 5–8 minutes, or knead by hand on a lightly floured surface for the same amount of time. If the dough becomes too sticky, add 1 teaspoon of flour at a time to make it soft and slightly tacky. Avoid adding too much flour to prevent a dry dough. The dough should feel a bit soft and bounce back slowly when poked. You can also perform a "windowpane test" by stretching a small piece of dough until it’s thin enough for light to pass through. If it stretches without tearing, it’s ready. If not, keep kneading.
1st Rise: Lightly grease a large bowl with olive oil or nonstick spray. Place the dough in the bowl, turning to coat all sides with oil. Cover and let rise in a warm environment for 1-2 hours, or until doubled in size. For a faster rise, you can refer to my Baking with Yeast Guide.
Shape the Bread: Grease a 9×5-inch loaf pan. Punch down the risen dough to release air. Lightly flour a work surface, your hands, and a rolling pin. Roll out the dough into a large rectangle, about 8×15 inches. Roll it up into an 8-inch log and place it in the prepared loaf pan.
2nd Rise: Cover the shaped loaf with aluminum foil, plastic wrap, or a clean kitchen towel. Allow it to rise until it’s about 1 inch above the top of the loaf pan, about 1 hour.
Bake the Bread: Adjust the oven rack to a lower position and preheat the oven to 350°F (177°C). Bake the bread for 30-34 minutes, or until golden brown on top. If the top browns too quickly, loosely tent the pan with aluminum foil (usually around the 20-minute mark). The bread is done when it sounds hollow when tapped or an instant-read thermometer reads 195–200°F (90–93°C) in the center.
Cool and Store: Remove the bread from the oven and let it cool in the pan for a few minutes before transferring it to a cooling rack. You can slice it after it cools, or let it cool completely before slicing. Store leftover bread tightly at room temperature for up to 6 days or in the refrigerator for up to 10 days.