Reserve ¼ cup flour for rolling. Combine dry ingredients in a mixing bowl and stir well to combine. Attach dough hook to mixer, turn on low and slowly stir in the milk, water, and butter. Continue mixing on lowest speed for 5 to 7 minutes, until flour is completely absorbed and the dough begins to lift away from the side of the bowl. Rub the entire surface of the dough and sides of the bowl with vegetable oil. Return dough to the bowl and cover it with a dry towel. Let dough rise for 30 minutes.
After 25 minutes, flour a smooth clean surface and remove the dough from bowl. Knead dough on floured surface for about 3 minutes to release air bubbles. Use a rolling pin to roll dough into a flat rectangular shape. Roll up dough into a tight log shape and put it inside a loaf pan. Cover the pan and allow the dough to rise for 30 minutes. After 20 minutes, turn on oven to preheat to 350°. Bake bread on center rack of oven for 40 minutes. Store in a bread box or other airtight container for up to 3 days at room temperature or up to 7 days in the refrigerator.
*pay close attention to the times listed. Just a few minutes can mean the difference between a dry or chewy loaf of bread.
Substitute whole wheat flour for white flour, to make a healthier version of this bread. It may require the addition of a little more water. If more water is needed, add water 1 TB at a time.