1 cup milk
2 tbsp. sugar
1 tbsp. butter
2 tsp. salt
1 envelope active dry yeast
1 cup warm water
6 to 7 cups flour, divided
2 cups coarsely shredded sharp cheddar
Scald milk with sugar, butter and salt in a small saucepan; cool until warm.
In a large mixing bowl, sprinkle yeast over warm water and lightly stir to dissolve. Let stand for 5 minutes until it begins to foam. Add milk mixture and 2 cups flour to bowl to form a soft dough. Gradually beat in enough of the remaining flour so that dough is not sticky, then mix in cheese. Turn onto a lightly floured board and knead for about 10 minutes until dough is smooth and elastic. Place in a lightly oiled bowl and turn to coat; cover with a clean dish towel. Let stand in a warm place to rise for 1 hour. Punch down dough and knead several times; divide in half and shape into 2 balls.
Place each into a lightly greased loaf pan. Cover and let rise again for 45 minutes or until doubled in bulk. Preheat oven to 350°F. Bake dough for 45 to 50 minutes or until bread sounds hollow when tapped. Let cool on wire racks.