Whisk the warm water, warm milk, yeast, and sugar together in a bowl. Cover and allow to sit for 5 minutes.

Add the butter, salt, and 1 cup of flour. Beat on low speed for 30 seconds, then add another cup of flour. Beat on medium speed until relatively incorporated. 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.

Knead the dough in the mixer for an additional 5–8 minutes or knead by hand for 5–8 minutes until it becomes slightly tacky but not sticky.

Lightly grease a large bowl with olive oil. Place the dough in the bowl, turning it to coat all sides in the oil. Cover and allow to rise in a warm environment for 1-2 hours or until double in size.

Grease a 9×5-inch loaf pan.

Punch down the dough to release air. Lightly flour a work surface, your hands, and a rolling pin. Roll the dough into a rectangle (about 8×15 inches) and roll it up into an 8-inch log. Place in the prepared loaf pan.

Cover the shaped loaf and allow to rise until it's about 1 inch above the top of the loaf pan, about 1 hour.

Adjust the oven rack to a lower position and preheat the oven to 350°F (177°C).

Bake for 32-36 minutes or until golden brown on top. The bread is done when an instant-read thermometer reads 195–200°F (90–93°C).

Remove from the oven and cool in the pan for a few minutes before removing and slicing. Store leftovers tightly covered at room temperature for up to 6 days or refrigerated for up to 10 days.