Place ingredients in the pan of the bread machine in the order listed, wet stuff first and yeast last (or follow the instructions for your bread machine if it uses a different wet/dry order).
Use the Basic Bread / White Bread setting, 1.5 lb loaf, light or medium crust.
Manual Bread Instructions
Knead all ingredients together by hand (8-10 minutes) or using a dough hook in a stand mixer (5-7 minutes). Dough will be slightly tacky.
Gather dough into a ball and place in a lightly oiled bowl. Cover the bowl with plastic wrap or a clean kitchen towel and leave in a warm place to rise for 75 minutes.
Punch dough down then roll into a log shape and place in bread pan. Cover loosely. Set in a warm place to rise for 60-75 minutes.
Toward the end of the second rise, preheat oven to 350° F.
Uncover bread. Add a few decorative slashes to the top with a sharp knife. Bake at 350 for 45-50 minutes. Remove from pan immediately and cool on a wire rack.