In a small bowl, combine the warm water and sugar. Stir until sugar dissolves. Sprinkle the active dry yeast over the water and let it sit for 5 to 10 minutes until foamy.
In a large mixing bowl, whisk together the flour and salt.
Make a well in the center of the flour mixture. Pour in the yeast mixture, olive oil, and warmed milk.
Using a wooden spoon or your hands, mix until a shaggy dough forms.
Turn the dough onto a lightly floured surface and knead for 8 to 10 minutes until smooth and elastic. Add flour as needed to prevent sticking, but avoid adding too much.
Lightly oil a large bowl and place the dough inside. Cover with a clean kitchen towel or plastic wrap. Let the dough rise in a warm, draft-free place for about 1 hour or until doubled in size.
Punch down the dough to release air. Turn it out onto a lightly floured surface and shape it into a loaf by folding the edges under to create surface tension.
Place the shaped dough into a greased 9×5-inch loaf pan. Cover again and let it rise for 45 minutes to 1 hour, until it has risen about 1 inch above the rim of the pan.
Preheat the oven to 375°F (190°C).
Bake the bread for 18 to 20 minutes, or until the top is golden brown and the loaf sounds hollow when tapped.
Remove the bread from the oven and allow it to cool in the pan for 10 minutes.
Transfer the bread to a wire rack to cool completely before slicing.
Slice the bread into 8 even slices and use for your grilled chicken sandwich.