In a small bowl, add 1/3 cup of the water and sprinkle the yeast on top. Set aside for 10 minutes.
In a large bowl, mix the remaining water, milk, 5-grain cereal mix, 3-4 cups of the flour, and the softened yeast. Once it is mixed, add the gluten flour and mix well. Next, add the oil, honey, and salt. Mix well, and then begin adding the rest of the flour until the dough cannot be easily mixed with a spoon.
Next you need to knead the dough. I used my brand new stand mixer that I got for Christmas (woo hoo!), but this can also be done by hand. If you are kneading by hand, flour your work surface, turn out the dough, and knead at least 15 minutes. If you are using a stand mixer, knead for 15 minutes on 2. It is ready when the dough is lighter in color, springy, and smooth. It will be tacky to the touch–do not add more flour.
Add some oil to a large bowl. Transfer the dough to the bowl, turning it over to coat it with the oil. Cover it with a towel and allow it to rise in a warm, draft-free location until it is doubled in size. This can take up to 4 hours depending on how cold your location is.
At this point, I put the dough in the refrigerator overnight because I learned in a bread-making class that bread tastes best when you do this. It is not necessary, however, and you can simply proceed with the recipe if you prefer.
Remove the dough from the bowl and knead again to remove all air bubbles and incorporate the oil on the outside of the dough. Cut into two and form into two loaves and place into two buttered or greased loaf pans. Cover and let rise again until the dough is just over the sides of the loaf pans. This should take roughly half the time of the first rise.
Preheat your oven to 400 degrees. Once it is hot, turn it down to 350 degrees and put in the loaves. Bake for 55 minutes or until the internal temperature reaches 190-200 degrees. Remove from pans and place on cooling racks and cool at least 1-2 hours before slicing.