Heat milk and water to 110 degrees, use an instant read thermometer to check temp.
In a bowl, whisk milk, water, honey, and butter together until honey is fully dissolved.
In a stand mixer, fitted with a dough hook, combine flour, yeast, and salt on the lowest speed. Slowly add the milk mixture to the flour mixture (should take about 2 minutes to add it all) while on the lowest speed.
Once everything is combined, turn speed up to a medium speed and allow to knead for a FULL 8-10 minutes, until dough is smooth and satiny. Scrape sides as needed during this time.
Transfer the dough to a floured work surface. Knead dough by hand to form a smooth, round ball, for about 15-30 seconds.
Place dough in a large bowl that has been sprayed with non-stick cooking spray. Cover tightly with plastic wrap, and rise until double in size. On counter for 1 - 1 1/2 hours. or in warmed oven for 40-50 minutes. *See notes
Preheat oven to 350 degrees F with rack in the lower-middle position, and grease an 8 1/2 x 4 1/2 inch loaf pan. Set aside
Transfer the dough to a lightly floured counter, and press into a rectangle shape about 1 inch thick, and about 8.5-9 inches in length. Roll dough into a firm cylinder shape. Be sure the cylinder is tight. Turn loaf seam side up, and gently pinch it closed. Making sure the seam is sealed so it does not pop open while baking.
Place in prepared pan, seam side down, and press it slightly so it fits into the corners of the pan. Cover with a greased piece of plastic, and let rise until double in size, and about 1 inch above the edge of the pan about 60 minutes at room temp.
Check dough by gently pressing it with your knuckles, it should barely spring back.
Remove the plastic from the loaf, and mist top with water using a water filled spray bottle. Bake for 35-40 minutes, rotating pan half way through baking time, and use an instant read thermometer to check for doneness. When loaf registers 205-210 degrees F, it is done.
Remove from oven and transfer pan to a wire rack. Let bread cool in the pan for 15 minutes before dumping out onto rack. Let cool completely *about 3 hours, before slicing and serving.