Mix the yeast, warm milk and sugar in a small bowl. Leave for 5 to 10 minutes to proof and the mixture is frothy. You can knead the dough by machine or hand. As always, I use my food processor on low speed and finish off the kneading by hand.
Put all the ingredients, including the proofed yeast mixture, in the bowl of your machine except the water. Pulse a couple of times. Then add about half the water. Knead, adding as much more of the water as required, till you hav, smooth and elastic dough.
Shape it into a ball and place it in an oiled bowl, rolling it first, to coat it completely with oil. Cover loosely and let it rise until double in volume. The ambient temperature will determine how long it takes to double. It takes about 1 1/2 hours in my warm tropical climate here.
Turn out the dough onto a lightly floured working surface. Gently deflate the dough and reshape it into a tight ball. Place it in a parchment lined Dutch Oven. Cover loosely and let it rise for about 45 minutes or till it is almost double in size.
Dust the top of the dough lightly and uniformly with flour. Using a sharp blade or lame, quickly score the top of the dough. Scoring dough helps it cook better and it looks pretty. As the bread bakes, it will expand and those scored lines will become more visible.
Cover the Dutch Oven tightly with the lid and place it in a pre-heated oven at 230C (450F). Bake for about 35 to 40 minutes and then remove the lid. Let it continue baking for another 10 minutes or so till it is darker in colour and has a crisper crust.
Take the bread out and let it cool completely wrapped in a cotton kitchen towel. Do not slice the bread for at least an hour or two after it comes out of the oven. This is because it continues cooking for a while as soon as it comes out of the oven. If you cut it while still warm, it will have a sticky and almost uncooked texture.