Activate the yeast by disolving it with the warm milk and water. Add the sugar and stir until well dissolved. Let this sit for about 5 minutes until the yeast is bubbly.
Mix the dough by adding the yeast mixture to the bowl of your mixer along with the salt, oil and flour. Hold one cup of flour back- you'll add this later if needed. 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.
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 an 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.