Whisk together milk, water and melted butter, then sprinkle active dry yeast across the top. Let sit for 10-15 minutes. In a large mixing bowl, whisk together flour and salt and let sit for 10 minutes. Pour in the yeast mixture and mix everything together.
Cover the bowl and set aside until the dough has doubled in volume, about 1 hour.
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 center. 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 as needed.
Turn the dough over and brush the smooth surface with olive oil. Cover the bowl and let the dough rise at room temperature overnight, anywhere from 8 to 12 hours.
Once you’re ready to bake, butter a loaf pan. Using a floured hand or dough scraper, pull the dough out onto a lightly floured surface, taking care not to completely deflate it. 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 center 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. Set aside, uncovered, to let rise for 1 to 2 hours or until the dough has risen ½ an inch or more above the edges of the loaf pan.
Position a rack to the centre of the oven and preheat to 350ºF (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 for 1 hour before slicing to allow the cooking process to complete.