In a large bowl, combine the warmed milk and 1/2 cup water, sugar, olive oil and yeast. Stir gently, and then add the flour and salt on top. Mix with a wooden spoon until combined; the dough will be very wet and sticky, but this is correct for this flour. If the dough seems a bit stiff or dry, then add the extra 1/4 cup of water. The consistency should be somewhere between firm enough to pick up in one mass, but too soft to knead. Cover bowl with a damp dish towel and let rise for approximately 45 minutes.
Grease and line an 8.5 x 4.5 loaf pan with parchment paper. Using a greased rubber spatula, scrape the dough from the edges of the bowl into an oblong shape, and then tip into the loaf pan. Coat your hands in either olive oil or butter, and smooth out the top of the loaf. Preheat the oven to 400°F.