In a small bowl, place the yeast, 1 teaspoon of the sugar and 3 tablespoons of the lukewarm water. Stir and keep in a warm place for the yeast to bloom, about 10-12 minutes. If the yeast fails to bloom (froteven after 15 minutes, discard it and start all over again with a fresh package.
While the yeast is blooming, mix in the salt with the flour in a large bowl, add the remaining sugar and butter and then add the yeast mixture when it is ready.
Add the rest of the water and milk and gently bring everything together. Tip this mixture on a lightly floured, clean working space/kitchen counter and knead until the dough is soft & pliable.
Place the dough ball back into a lightly greased bowl. Roll it over so that the oil covers the surface of the dough. Then cover with a clean, damp kitchen cloth or lightly oiled cling film and keep in a warm place till the dough has doubled, about 1-1/2 to 2 hours
When the dough has doubled, punch it down lightly to release the excess air. Then pat it out gently into a rectangle and roll it up like a carpet.
Place the dough in a lightly greased 9x5" loaf pan and cover. Allow the dough to proof for another 15-20 minutes. Then lightly brush the surface with milk or egg wash
Bake in a preheated oven at 175 degrees C for 30-35 minutes or till the surface of the loaf is golden and the bread springs back when lightly pressed.
Remove from the oven and let the loaf cool on a wire rack for about 15 minutes, then turn it out gently and let it cool completely before slicing. Do not slice before it has cooled or the loaf will turn out cakey/fudgy.