Add the Wet Ingredients. Add the warm milk, egg, butter, and honey to the bread-machine pan.
Add the Flour. Add the whole wheat flour and bread flour over the wet ingredients. Spread the flour over the top so it covers the liquid underneath.
Add the Salt. Place the salt in one corner on top of the flour.
Add the Instant Yeast. Make a small well in the center of the flour and add the instant yeast, keeping it separate from the salt.
Select the Bread Machine Settings. Place the bread pan into the bread machine. For my bread machine, I use Menu #1 – Basic, 2 lb loaf, and Light crust.
Start the Bread Machine. Press start and let the bread machine take care of the mixing, kneading, rising, and baking. The whole process takes almost 3 hours in my bread machine.
Remove the Bread. Once the cycle is finished, carefully remove the bread pan from the machine, take out the loaf, and transfer it to a cooling rack.
Let It Cool Completely. Let the bread cool completely before slicing. For me, this usually takes about 4 hours. Letting it cool gives the inside time to finish setting and makes the bread much easier to slice cleanly.
Slice and Store. Once completely cooled, slice the loaf and store it as desired. Make sure the bread is completely cool before putting it into a bread bag to avoid trapping condensation.