In a small bowl, combine the warm water, sugar, and yeast. Stir gently and let it sit for about 5-10 minutes until it becomes frothy. This means the yeast is active.

In a large mixing bowl, whisk together the flour and salt. Add the yeast mixture, warm milk, and olive oil. Stir with a wooden spoon or your hands until the dough starts to come together.

Turn the dough onto a lightly floured surface and knead for about 8-10 minutes until smooth and elastic. If the dough feels too sticky, add a little more flour, a tablespoon at a time.

While the dough is resting, heat butter or oil in a frying pan over medium heat. Add the thinly sliced onions, sprinkle with black pepper, and cook slowly for 10-15 minutes, stirring often, until the onions are soft and golden brown. Set aside to cool slightly.

Place the dough in a clean, lightly oiled bowl and cover with a kitchen towel or plastic wrap. Let it rise in a warm place for about 1 hour, or until it has doubled in size.

After the dough has risen, punch it down gently. Spread it out on a floured surface, sprinkle the grated cheese, caramelized onions, and dried herbs evenly over the dough. Fold and knead gently just enough to incorporate these ingredients evenly without losing the air.

Shape the dough into a loaf and place it in a greased loaf pan or on a baking sheet. Cover again and let it rise for another 20-30 minutes. Meanwhile, preheat the oven to 375°F (190°C). Bake the bread for 25-30 minutes, or until the crust is golden brown and the loaf sounds hollow when tapped. Cool on a wire rack before slicing.