In the bowl of the stand up mixer whisk together the flour, sugar and yeast, make a well in the middle and add the milk and oil, start to knead with the dough hook, add the water a little at a time and knead 2 minutes (on speed #2), then add the salt and knead 3 minutes until the dough pulls away from the side of the bowl. Cover the mixing bowl with a damp towel and let rest 20 minutes, then knead again on speed #2 for 1 minute. Cover the bowl again and let rest 15 minutes. Knead again for 1 minute.
Move the dough to a lightly floured flat surface and knead for 30 seconds and form into a smooth ball. Place in a lightly oiled bowl, turning the dough to lightly cover in oil. Cover the bowl with plastic wrap and let rise for 1-2 hours or until doubled in bulk in a warm draft free area.
Form the dough into a loaf (do not punch down), place on a parchment paper covered cookie sheet, loosely cover with plastic wrap and let rise 1 hour,.
Pre-heat oven to 400F (200 C). Place an oven safe pan in the bottom of the oven while the oven is pre-heating.
Score the loaf, pour a cup of very hot water in the pan, quickly put the loaf in the oven and bake for approximately 25-30 minutes. Move to a wire rack to cool completely. Enjoy!