In a mixing bowl, combine 2 c. flour, yeast, sugar, salt and baking powder. Mix for 1 minute.
While flour is mixing, pour milk and water into a small saucepan. Heat over low heat until warm, about 2 minutes (I did this in the microwave for 45-60 seconds). Pour into mixing bowl and beat for 2 minutes.
Add remaining cup of flour, 1/2 a cup at a time, and mix for 3-5 minutes (or knead by hand for 5-7 minutes). Dough will be somewhat sticky.
Grease a loaf pan and sprinkle with cornmeal (I used a 91/4 x 51/4 x 31/4 inch loaf pan). Spread dough into pan, cover and let rise for 45 minutes. (I preheated my oven to warm, then turned it off. I put the loaf in the front of the oven and cracked the oven door. It only took 30 minutes for the bread to raise. I also let it raise until it reached the top of the loaf pan.)
Bake at 400 degrees for 20-25 minutes, until golden brown.
Notes
According to Kate you can use this recipe for making traditional English muffins if you’d like. Add an extra 1/2 c. of flour to the dough and shape on a well-floured surface. Let rise on a cookie sheet and bake for 10-15 minutes. You should get about 6 muffins.