The night before: In a small mixing bowl, combine ⅓ cup of water (or weigh out 66 grams) with ½ cup of bread flour (or weigh out 66 grams). Sprinkle in ⅛ teaspoon of yeast.Stir the mixture until well combined and there are no lumps. Cover the bowl with plastic wrap. Let the starter rest at room temperature overnight or for at least 8-12 hours.
Scald the milk: Pour the milk into a microwave-safe container and heat it in the microwave for about 90 seconds until it's hot but not boiling. Allow the milk to cool slightly. Add the sugar to the warm milk and stir until it's completely dissolved. Sprinkle the yeast over the warm milk mixture and gently stir to combine. After the yeast has activated, add the cold water to the mixture and stir until well combined.
Mix the dough by adding the yeast mixture and starter to the bowl of your mixer along with the salt, oil and flour. With your mixer on low begin mixing. When all of the flour is incorporated, turn the mixer up to a medium speed. Kneed for about three minutes. Watch for the dough to come together as one mass and stop sticking to the sides of the bowl. Add a little extra flour if it still looks sticky after 5 minutes of mixing.
The dough is done when it is smooth and elasticy. It should not be sticking to the sides.
Let the dough rest by placing in in an oiled bowl and covering it with either plastic wrap or a towel. After 30 minutes, gently deflate the dough and re-form into a round ball again. Let rest an additional 30 minutes.
Shape and divide the dough by inverting the dough onto a floured surface. Press the air out of the dough and divide into two equal portions. Gently press each portion into a rectangle approx the same width as the pan. Firmly roll the dough into a loaf shape. Pinch the seam to seal.
Proof the loaf by placing the dough seam down into an oiled loaf pan. Cover with plastic wrap or a towel. Allow the loaf to proof for about 45 minutes to 1 hour. Use the poke test to see if the dough is ready to bake. When it is ready it will leave a small impression when touched.
Bake the loaf by placing it into the center of a 350° preheated oven. Make sure there is no rack above the bread loaf. It will need room to rise. Bake for approx. 30 minutes or until the dough sounds hollow when thumped and smells aromatic like fresh bread.