Place the ingredients into the bread machine pan, starting with the liquid ingredients listed first.
Place the flour on top of the liquid ingredients and create a small well in the flour.
Nestle the salt and yeast in the flour well, then close the lid.
Set the bread machine to bake using the basic cycle and medium crust setting (or equivalent settings on your machine).
Press start and allow the machine to cycle.
Once the baking cycle is complete, open the lid and allow the bread to cool for a few minutes before removing it from the pan and cooling completely on a cooling rack on the counter.
Notes
The quantities in the recipe above are for a 2 lb loaf. For a 1 1/2 pound loaf, you'll need:
Liquid Ingredients (Add First)
1/2 cup milk
1/3 cup water
1 large egg
2 Tbsp butter, unsalted, room temperature, cut into pieces