Proof the yeast: In a bowl, stir warm water and sugar. Sprinkle in the yeast. Let it sit 5–10 minutes until foamy.
If using instant yeast, you can skip proofing and mix it directly with the flour, but make sure the water is still warm.
Mix the dough: Add 2 3/4 cups flour, salt, and oil (and milk if using) to the yeast mixture. Stir until a shaggy dough forms. If it’s very sticky, add flour 1 tablespoon at a time until it’s soft but manageable.
Knead: Turn the dough onto a lightly floured surface.
Knead for 6–8 minutes until smooth, elastic, and slightly tacky, not sticky. You can also knead in the bowl by stretching and folding with a spatula if you prefer less mess.
First rise: Shape the dough into a ball and place it in a lightly oiled bowl. Cover and let it rise in a warm spot until doubled, about 45–60 minutes. Tip: A warm but not hot environment helps.
The air fryer (off) with the light on, or inside the microwave with a cup of hot water, works well.
Prepare the pan: Grease a small loaf pan and, if you like, line it with a parchment sling for easy removal.
Shape the loaf: Gently deflate the dough. Pat it into a rectangle about as long as your pan. Roll it up tightly from the short side, pinch the seam, and tuck the ends under.
Place it seam-side down into the prepared pan.
Second rise: Cover loosely and let it rise until the dough crowns about 1 inch above the rim, 25–40 minutes depending on room temp. Don’t overproof: It should look puffy and spring back slowly when gently poked.
Preheat the air fryer: Set to 320°F (160°C) for 5 minutes. Preheating helps with even browning and oven spring.
Bake: Place the pan in the air fryer basket. Air fry at 320°F (160°C) for 18–22 minutes.
Then reduce to 300°F (150°C) and cook 5–8 more minutes. The top should be golden and the internal temperature should read 190–195°F (88–90°C).
Finish and cool: Remove the loaf. If you want a softer crust, brush with melted butter.
Let it cool in the pan for 10 minutes, then lift out and cool fully on a rack at least 45 minutes before slicing. Cooling sets the crumb and prevents squashing.