Whisk the warm water, warm milk, yeast, and sugar together in the bowl of your stand mixer fitted with a dough hook or paddle attachment. Cover and allow to sit for 5 minutes.
Add the butter, salt, and 1 cup flour. Beat on low speed for 30 seconds, scrape down the sides of the bowl with a rubber spatula, then add another cup of flour. Beat on medium speed until relatively incorporated (there may still be chunks of butter). Add the remaining flour and beat on medium speed until the dough comes together and pulls away from the sides of the bowl, about 2 minutes.
Keep the dough in the mixer and beat for an additional 3 minutes or knead by hand on a lightly floured surface for 3 minutes.
Lightly grease a large bowl with olive oil or nonstick spray. Place the dough in the bowl, turning it to coat all sides in the oil. Cover the bowl with aluminum foil, plastic wrap, or a clean kitchen towel. Allow the dough to rise in a relatively warm environment for 1-2 hours or until double in size. Grease a 9×5 inch loaf pan.
When the dough is ready, punch it down to release the air. Lightly flour a work surface, your hands, and a rolling pin. Roll the dough out into a large rectangle, about 8×15 inches. Roll it up into an 8 inch log and place in the prepared loaf pan.
Cover shaped loaf with aluminum foil, plastic wrap, or a clean kitchen towel. Allow to rise until itʼs about 1 inch above the top of the loaf pan, about 1 hour.
Adjust oven rack to a lower position and preheat oven to 350°F
Bake for 30-34 minutes or until golden brown on top. If you gently tap on the loaf, it should sound hollow. For a more accurate test, the bread is done when an instant read thermometer reads the center of the loaf as 195°F