Combine 2 cups flour, dry yeast and salt in a large mixer bowl and stir until blended. Combine water, milk, oil and honey in a microwave-safe bowl. Microwave on HIGH in 15 second increments until very warm but not hot to the touch (120° to 130°F). Add to flour mixture.
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. Stir in just enough remaining flour so that the dough will form into a ball.
Knead on lightly floured surface until smooth and elastic and springs back when lightly pressed with 2 fingers, about 6 to 8 minutes. Cover with a towel; let rest for 10 minutes.
Roll dough into a 12 x 7-inch rectangle using a rolling pin. Beginning at short end of rectangle, roll up tightly. Pinch seams and ends to seal. Place, seam sides down, in greased 8-1/2 x 4-1/2 inch loaf pan . Cover with towel; let rise in warm place until doubled in size, about 45 to 60 minutes .
Bake in preheated 375°F oven for 35 to 45 minutes or until golden brown. Remove from pan by running a knife around the edges and invert onto wire rack to cool.