In the bowl of a stand mixer, combine yeast, warm water and about 1 tsp of the sugar. Let this stand for about 5 minutes, until foamy.
Add the milk, remaining sugar, melted butter and salt. Stir everything with a wooden spoon.
Attach the dough hook to the stand mixer. Add half of the flour and beat the mixture at low speed until the flour is moistened. Add the remaining flour, and beat again, starting at low speed, then speeding up until the flour is incorporated.
Continue to run the mixer to knead the dough until it is smooth and cleans the sides of the bowl. This should take about 2-3 minutes.
Shape the dough into a ball. Place it in a bowl and cover with a clean towel or plastic wrap. Let this rise for 1½ hours, or until the dough is doubled in bulk.
Gently deflate the dough. On a lightly dusted surface, roll the dough into a 8x14 inch rectangle/oval. Roll the dough tightly to form an 8 inch long log. Place this dough log into a greased 9x 5 inch loaf pan.
Cover the pan again. Let this rise for 1 hour, or until the dough has extended about 1½ inches from the rim of the loaf pan.
Position a rack on the second lowest position in the oven. Preheat oven to 350 F. Once preheat is done, bake the bread at the second lowest rack position for 25-27 minutes. The bread should feel hollow when tapped, and the top is nicely golden. Allow the bread to cool before slicing.