In a large mixing bowl, combine ½ cup warm water, ½ cup warm milk and 1 ½ tablespoons sugar or honey. Stir until the sugar dissolves. Sprinkle ½ tablespoon active-dry yeast over the liquid and let it sit for 5-10 minutes until it becomes foamy and bubbly. If the yeast doesn't foam, it may be expired or the liquid was too hot.
Add 1 ½ tablespoons unsalted butter to the yeast mixture and stir until combined. Add 1 teaspoons salt and 3 cups of flour, mixing with a wooden spoon until a shaggy dough forms.
Turn the dough out onto a lightly floured surface and knead for 8-10 minutes by hand, or use a stand mixer with dough hook for 5-6 minutes on medium speed. The dough should become smooth, elastic, and slightly tacky but not sticky. If the dough is too sticky, gradually add the remaining ½ cup, a few tablespoons at a time, until the dough pulls away from the sides of the bowl.
Place the kneaded dough in a greased bowl, turning it once to coat all sides with oil. Cover with a damp towel or plastic wrap and let rise in a warm, draft-free place for 1-1½ hours, or until doubled in size.
Punch down the risen dough to release air bubbles. Turn it out onto a lightly floured surface and shape into a loaf. To do this, flatten the dough into a rectangle roughly the width of your loaf pan, then roll it up tightly from one short end, pinching the seam closed.
Place the shaped loaf seam-side down in a greased 9x5-inch loaf pan. Cover and let it rise for 45-60 minutes, or until the dough crowns about 1 inch above the rim of the pan.
Preheat your oven to 375°F (190°C). Bake the loaf for 35-40 minutes, or until the top is golden brown and the bread sounds hollow when tapped on the bottom. The internal temperature should reach 190°F (88°C).
Remove the bread from the pan immediately and let it cool on a wire or cooling rack for a few hours before slicing. This allows the crumb to set properly and not clump.