Pour ½ cup of the warm water into a large bowl and sprinkle the yeast on top.
Allow to sit for about 10 minutes or until the mixture bubbles.
Add the remaining warm water, oil, honey, milk powder, salt, and about half of the flour.
Beat for about 3 minutes to develop the gluten (you can also beat by hand using a large wooden spoon), and then gradually add more flour, beating well after each addition, until a soft dough forms and begins to pull away from the sides of the bowl.
Turn out the dough onto a floured work surface and knead, adding flour as needed to prevent sticking, for 10 minutes.
(The less flour you use, the softer your bread will be.
)
Place the dough ball into a large, well-greased bowl, turning the dough so the entire surface is greased.
Cover the bowl and let the dough rise until double, about 1½ to 2 hours.
Punch down the dough, knead again for a minute or so, and then place it back in the greased bowl, turning the dough so the entire surface is greased.
Cover with a towel and let the dough rise again until nearly double, about 1 to 1½ hours.
Punch down the dough and shape it into 2 loaves.
Place the loaves into 2 greased loaf pans, cover, and let the dough rise until it reaches about 1 inch above the tops of the pans, about an hour.
Bake in a preheated 375° oven for 40 to 45 minutes or until done.