In a 2 cup glass measuring cup, combine the milk and water. Heat for 45 seconds on half power. Stir and check temperature with an instant read thermometer. It should read 110 degrees. If the mixture is too cold, continue microwaving on half powder for 10 second increments. If it is too warm, let the mixture cool until it reaches 110 degrees
Add the warm water/yeast mixture to the bowl of a stand mixer. Add the yeast and sugar. Whisk together. Cover with a towel and let stand for 5 minutes
Add the butter, salt, and 1 cup flour. Using the paddle attachment, mix on low speed for 30 seconds, then add an additional cup, mix for 30 more seconds, then add the final cup. Mix on low for 1 minute until a soft, stick dough forms
Switch to the dough hook attachment, and knead on low for 4 minutes.
Lightly grease a large bowl with butter, oil or nonstick baking spray. Place the dough in the bowl, turning it to coat all sides. Cover the bowl with plastic wrap or a clean kitchen towel. Let the dough to rise in a relatively warm spot for 1-2 hours or until it has doubled in size.
Grease a 9×5 inch loaf pan with oil or nonstick baking spray, set aside.
Punch the dough down with your fist to release the air. On a lightly floured surface, using a rolling pin, roll the dough out into a rectangle, about 8x15-inches. Then roll into an 8-inch log.
Place the log into the greased pan. Cover with plastic wrap or a clean kitchen towel and rise for about 1 hour. The dough should be peeking up about 1-1/2 inches over the edge of the pan.
Preheat oven to 350 degrees.
Place bread in oven and bake for 30-35 minutes or until golden brown on top. When done, it should sound hollow.
Remove and allow to cool in the pan for 15 minutes before transferring to a wire rack to cool for at least 30 minutes before slicing and serving.