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Activate the yeast by combining the water, sugar, and yeast. Mix with a spoon, and let it sit undisturbed for 5-10 minutes.
Mix together the flour, salt, and powdered milk in large bowl.
When yeast is activated (foamy and cloudy-looking), add to flour mixture. Give it a rough stir with a fork and add 1 tablespoon of olive oil.
Continue stirring with fork until firm enough to remove from bowl. Place dough onto lightly-floured surface.
Knead dough for 5 minutes. It will remain slightly sticky and oily-feeling. Add only enough additional flour to keep from sticking to counter while kneading.
Form into a ball and place into a bowl. Rub ball of dough with a small amount of olive oil.
Cover bowl with plastic wrap and set somewhere warm (or at least not cool). Leave it alone to proof for 1 hour.
Remove from bowl and knead for additional 2 minutes.
Use paper towel or brush to coat a little olive oil on 8-inch, nonstick, smooth skillet. Rub a little more oil on underside of skillet lid.
Place dough into skillet. Gently spread dough to fill the entire diameter of the pan.
Cover skillet with lid and put in warm place to proof for 15 more minutes.
Place an upside-down cast iron skillet (or similar) over stove burner. Turn burner to medium/low heat, and let cast iron warm up for a few minutes.
Set covered skillet with dough on top of warm cast iron. Let it cook undisturbed for 10 minutes. Then carefully turn over the dough, re-cover pan, and cook additional 5 minutes.
Remove lid, and remove pan from heat. Cover entire skillet with a towel, and leave undisturbed for 20-30 minutes to cool.
Remove bread from pan. Cut with bread knife and serve.