Adjust oven rack to low position and heat oven to 200° F. Once oven temperature reaches 200° F, maintain heat 10 minutes, then turn off oven heat. I use the proof setting on my oven which maintains the heat at 85° F so if your kitchen is warm enough, there is no need to use the oven for proofing – just keep the bowl in a draft-free area of the kitchen.
Mix 3 ½ cups of the flour and salt in bowl of standing mixer fitted with the paddle attachment. Mix milk, water, butter, honey, and yeast in 4-cup liquid measuring cup. Turn mixer to low and slowly add liquid. When dough comes together, remove the paddle attachment and switch to the dough hook – the dough will be very sticky at this point. Increase speed to medium (setting number 4 on a KitchenAid mixer) and mix until dough is smooth and satiny, stopping machine two or three times to scrape dough from hook if necessary, about 10 minutes. If, after 5 minutes the dough still sticks to the side of the bowl, add another ¼ cup of flour to the dough, 1 tablespoon at a time until the dough clears the sides of the bowl. Turn dough onto lightly floured work surface; knead to form a smooth, round ball, about 15 seconds.
Place dough in very lightly oiled bowl, rubbing dough around bowl to lightly coat. Cover bowl tightly with plastic wrap; place in warm oven until dough doubles in size, 40 to 50 minutes.
Form dough into loaf by gently pressing the dough into a rectangle, 1-inch thick and no wider than 9 inches long, with the long side closest to you. Next, starting with the long side, roll the dough firmly into a cylinder, pinching the seam with your fingers to make sure the dough sticks to itself. Turn dough seam side up and pinch it closed. Place dough in greased 9-by-5-by-3-inch loaf pan (a 1 lb loaf pan) and press gently so dough touches all four sides of pan. Cover the pan with plastic wrap; set aside in warm spot (not in the oven) until dough almost doubles in size, 20 to 30 minutes.
Meanwhile, heat oven to 350° F and adjust the racks to the center and bottom positions. Place an empty baking pan on the bottom rack. Bring 2 cups water to boil.
Remove plastic wrap from loaf pan. Place pan in oven and immediately pour heated water into empty baking pan; close oven door. Bake until instant-read thermometer inserted at angle from short end just above pan rim into center of loaf reads 195° F, about 40 to 50 minutes. Remove bread from pan, transfer to a wire rack, and cool to room temperature. Slice and serve.
