Dissolve yeast and sugar in 1/4 cup warm water in small bowl. Let stand until foamy, 5 minutes.
Stir together flours in large bowl. Make well in center. Combine remaining 1/2 cup warm water, milk, salt and oil in small bowl. Pour into well. Add yeast mixture. Mix with spoon, then with hands until mixture comes together, forming shaggy ball.
Knead dough on floured surface 2 minutes.
Clean bowl; oil inside. Place dough in bowl; turn to coat. Cover with damp towel. Let rise in warm place, away from drafts, until doubled in bulk, about 45 minutes.
Transfer dough to work surface. Knead vigorously for 10 minutes.
Grease 8 x 4-inch loaf pan. Shape dough into cylinder, the length of pan; tuck ends under to square ends. Lightly oil top; sprinkle lightly with a little flour. Place, seam side down, in pan. Cover with towel. Let rise in warm place until doubled, 45 to 60 minutes (dough should not spring back when lightly poked with finger).
Heat oven to 425 degrees F. Bake bread 15 minutes. Reduce temperature to 400 degrees F. Bake 30 to 35 minutes, until loaf sounds hollow when tapped with finger. If bread browns too quickly, cover loosely with foil. Transfer bread to rack to cool. Makes 1 loaf (16 slices).