Sprinkle yeast over ½ cup warm water; let stand 5 minutes. Combine yeast mixture, milk, 1 cup water, eggs, butter, salt, honey, and wheat germ in a large bowl; mix well. Add flour, stirring to make a soft dough.
Turn dough out on a floured surface, and knead at least 5 minutes or until smooth and elastic. Place dough in a greased bowl, turning to grease top. Cover and let rise in a warm polace (85°), free from drafts, 1½ hours or until doubled in bulk.
Divide dough in half, and place on a floured surface. Roll each half into an 8" x 18" rectangle. Roll up, beginning at narrow edge; as you roll the dough, press firmly to eliminate air pockets. Pinch seams and ends together to seal. Place seam side down in two well-greased 9" x 5" loaf pans.
Cover and let rise until doubled in bluk. Bake at 400° for 15 minutes; lower heat to 350° and bake 25 minutes or until loaves sound hollow when tapped. Remove from pans; cool on wire racks.
Yield: 2 loaves