Combine 1/4 cup of the water, 1 tablespoon of the honey and yeast. Stir to dissolve yeast and let stand until bubbly, about 5 minutes.
Fit processor with steel blade. Measure flours, dry milk, lard, remaining 2 tablespoons of the honey, and salt into work bowl. Process until mixed, about 10 seconds.
Add yeast mixture and egg to flour mixture. Process until blended, about 10 seconds.
Turn on processor and very slowly drizzle just enough remaining water through feed tube into flour mixture so dough forms a ball that cleans the sides of the bowl. Process until ball turns around bowl about 25 times. Turn off processor and let dough stand 1 to 2 minutes.
Turn on processor and gradually drizzle in enough remaining water to make dough soft and smooth but not sticky. Process until dough turns around bowl about 15 times.
Turn dough onto lightly floured surface. Shape into ball and place in lightly greased bowl, turning to grease all sides. Cover loosely with plastic wrap and let stand in warm place until doubled, about 1 hour.
Punch dough down. Shape into loaf and place in greased 8 1/2 x 4 1/2 x 2 1/2 inch loaf pan. Let stand in warm place until almost doubled, about 45 minutes.
Heat oven to 375 F. Bake until loaf sounds hollow when tapped, 25 - 30 minutes.
Remove immediately from pan. Cool on wire rack.
Food Processor Bread Book From the collection of Jim Vorheis
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