Combine 1-3/4 cups flour, oats, undissolved yeast and salt in a large bowl. Heat water, milk, molasses and butter until very warm (120° to 130°F). Gradually add to flour mixture. Beat 2 minutes at medium speed of electric mixer, scraping bowl occasionally. Add egg, raisins, walnuts and 1 cup flour; beat 2 minutes at high speed. Stir in enough remaining flour to make a soft dough. Knead on lightly floured surface until smooth and elastic, 8 to 10 minutes. Cover; let rest 10 minutes.Divide dough in half; roll each half to 12 x 7-inch rectangle. Beginning from short end, roll up tightly as for jelly roll. Pinch seams and sides 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 1 hour.
Bake at 400°F for 25 minutes or until done. Remove from pans; cool on wire racks.
*To toast oats: Place oats on baking sheet. Bake at 350°F for 5 minutes.