Mix yeast, sugar, and water together in a cup. Let stand for 10 minutes. Mixture should become foamy.
Put all dry ingredients plus butter into a large bowl. Add the yeast mixture and stir well. Add the remaining water and stir until it becomes too difficult. Then, continue mixing using your bare hands. You want to form a ball of dough that is moist, not wet.
When the dough has reached the proper consistency, begin kneading. Stretch and fold the dough on a countertop that has been sprinkled with flour. Continue folding and stretching for 10 minutes. The dough should become smooth and elastic.
When the dough is properly kneaded, form it into a smooth ball and place the ball smooth side up into a lightly greased bowl. Cover the bowl with either a damp towel or a lightly greased piece of plastic wrap and allow to rise until doubled in size. (This could take anywhere from 30 minutes to 2 hours depending on the humidity and temperature.).
When dough has doubled in size, punch it in the middle to deflate it. Knead the dough again on a lightly floured, but only for 2 minutes. Form the dough into a loaf shape and place it smooth side up into a greased loaf pan. Allow to rise again until it has lifted a couple of inches. (You do not want it bulging over the side of the pan).
Bake at 425 degrees for 10 minutes, then reduce oven temperature to 350 and bake 20-40 minutes or until loaf is golden brown. (To check to see if the loaf is fully cooked, tip it out of the pan and thump it on the bottom. If it sounds hollow, it is done.).