Combine the water and milk in a microwave-safe liquid measuring cup or bowl. Warm the milk and water to 105-115° F. (If you do not have a microwave, you can warm them in a pan on the stove.)
Pour the milk and water into the bowl of a stand mixer.* Add the honey and yeast and whisk to combine. Let stand for 5 to 10 minutes, until the yeast starts to foam or bubble. If nothing happens after 10 minutes, your yeast may be dead and you should start over with new yeast.
Add the flour, salt and 2 tablespoons butter to the bowl. Mix using the paddle attachment until everything is combined.
Switch to the dough hook. Knead the dough on low speed for about 8 minutes. The dough should feel slightly sticky when you touch it, but a lot of dough shouldn't stick to your finger. If the dough is very sticky, add more flour, 1 tablespoon at a time. (I usually need to add 2-3 tablespoons more flour.) After kneading, the dough should pull away from the sides of the bowl.
Transfer the dough to a large oiled bowl and turn it once to coat it with oil. Cover the bowl with a clean kitchen towel and let the dough rise for 60-90 minutes, until it has doubled in size.
Grease a 9 x 5-inch metal or glass bread pan. Use your hands to gently punch down the dough, deflating it and popping any air bubbles. Transfer the dough to a lightly floured work surface, shape it into a rough rectangle and use a rolling pin to roll it out into a 9x13-inch rectangle. If the dough is resistant to rolling out, let it rest for about 5 minutes and then try again (the dough will relax as it rests). Starting from the short edge, roll up the rectangle of dough and place it, seam side down, in your greased bread pan.
Cover with a clean kitchen towel and let the dough rise in the bread pan until the top of the loaf is just above the top of the pan. This should take about 30-45 minutes. Meanwhile, preheat oven to 350° F.
Bake the bread for 35 to 40 minutes, until the inside registers 200° F on an instant-read thermometer. If desired, brush 1 tablespoon of melted butter on the top crust as soon as the bread comes out of the oven.
Let the bread cool for 15 minutes in the pan and then remove it to a wire rack to finish cooling. The bread will slice easiest when it is cool. Store in an airtight container at room temperature for up to 3 days or in the freezer for up to 2 months.