Heat milk and water in a large saucepan, over medium heat until it is 110-115º F. Remove from heat.
1 1/2 cups milk, 1 cup water
Mix in sugar and yeast, whisk until no lumps. Add 3 cups of bread flour and salt. Mix until smooth. Add the remaining 2 cups of flour, mix until it forms a ball of dough. The dough will be sticky. Place in a well oiled bowl, and turn to coat. Cover and let rise for about an hour, or until the dough has doubled in size.
2 Tablespoons sugar, 4 1/2 teaspoons (2 packets) Active Dry Yeast, 5 cups bread flour, 1 teaspoon salt
While the dough is rising, dissolve the baking soda in 1 Tablespoon of warm water.
1/2 teaspoon baking soda, 1 Tablespoon warm water
Once the dough has doubled in size, punch the dough down. Add the grated cheese, melted butter, and the baking soda mixture. Mix until the cheese is evenly distributed.
2 cups cheddar cheese, 1/4 cup butter
Divide the dough into 2 9x5 inch loaf pans, that have been sprayed with a non-stick spray.
Let rise, uncovered, for about an hour. You will know it is ready to bake when an indentation with remain after lightly touching it.
Preheat oven to 400º F. Bake for 25-30 minutes.
Remove from oven, and let cool for 5-10 minutes. Remove bread from the pans, and place on a wire rack to cool completely before serving.