Whisk together milk, water and honey (if using) then sprinkle active dry yeast across the top. Let sit for 10-12 minutes. In a large mixing bowl, whisk together flour and salt and let sit for 10 minutes.
Add yeast mixture to flour and salt and mix, then cover and set aside for 30 minutes.
Now we’re going to stretch and fold the dough. Using a wet hand, lift one side of the dough and fold it over and press it into the centre. Turn the bowl 45 degrees and lift from another side and fold again. Keep doing this until the dough starts to hold together, transforming from a shaggy, sticky dough into a smooth dough ball, wetting your fingers to prevent sticking as needed.
Cover the bowl and let the dough rise at room temperature for 2 to 3 hours until it has doubled in volume. Note that the time may vary based on room temperature and environment.
Butter a loaf pan. Using a floured hand or dough scraper, pull the dough out onto a lightly floured surface. Again, the dough will be sticky with lots of bubbly fermentation activity. It will stick to your hands and to the sides of the bowl until you turn it out onto a floured surface and start shaping it. That’s good!
Flour your hands and/or dough scraper again and shape the dough into a loaf. Next, take one end and lift and fold 1/3 of the dough into the centre as if you were folding a letter. Repeat with the other end, then turn and place the loaf seam side down in the buttered loaf pan. If needed, lift each end from the middle and gently stretch it into the corners so the dough fills the pan. Drizzle with 1 teaspoon olive oil and rub to coat. Set aside, uncovered, to let rise for 1 hour or until the dough has risen ½ inch above the rim of the loaf pan.
Thirty minutes before baking, position a rack to the centre of the oven and preheat the oven to 375ºF (180ºC). Bake for 45 minutes until the top is golden and it sounds hollow when you tap on the top. Turn loaf out onto a wire cooling rack and let cool completely before slicing.