In large bowl, combine 3 1/2 cups flour, undissolved yeast, and salt. Heat water, milk, honey, and oil until very warm (120o to 130oF). Gradually add to dry ingredients; beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add 1 cup flour; beat 2 minutes at high speed, scraping bowl occasionally. With spoon, stir in enough remaining flour to make soft dough. Knead on lightly floured surface until smooth and elastic, about 8 to 10 minutes. Cover; let rest 10 minutes.
Remove dough to lightly floured surface; divide dough in half. Roll each half to 12 x 7-inch rectangle. Beginning at short end of each rectangle, roll up tightly as for jelly roll. Pinch seams and ends to seal. Place, seam sides down, in 2 greased 8 1/2 x 4 1/2-inch loaf pans. Cover; let rise in warm, draft-free place until doubled in size, about 30 to 60 minutes.
Bake at 375oF for 35 to 45 minutes or until done. Remove from pans; let cool on wire racks.
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