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Pour the warm water and milk (about 110-115 degrees F) into the bowl of a stand mixer.
Sprinkle the yeast over the liquids.
Add the sugar, egg, salt, potatoes, butter and flour.
Use the paddle attachment to mix the ingredients just until combined.
Then switch to the dough hook and beat on medium-high speed for 5-7 minutes. The dough should be slightly sticky.
Spray a large bowl with cooking spray. Place the kneaded dough ball into the greased bowl and cover with plastic wrap or a kitchen towel.
Set the bowl in a warm place until the dough has doubled in size (about 30 minutes).
Divide the dough in two and shape into two loaves.
Place the dough into two greased 9x5 loaf pans.
Cover the pans and put them in a warm place, allowing the dough to rise again until almost double (about 25 minutes).
Preheat the oven to 350 degrees.
Bake the bread (uncovered) for 30-35 minutes or until the tops are dry and firm, with a golden brown color.
Remove the bread from the pans and allow them to cool on a wire rack.
Store in an airtight container.
*Calories are based on two loaves, each being cut into 10 slices. 1 slice per serving.