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Mix the yeast with half-cup water and 3-4 tablespoons flour. Let stand 10 minutes. Sift both kinds of flour with salt in a large mixing bowl and make a well in the center.
Pour yeast mixture, oil, milk, honey, and the remaining water into the well. Gradually add flour from the sides of the well into the liquid until all flour is moist and it forms stiff, sticky dough. Turn the dough of a floured board and knead thoroughly about 15 minutes. Cover with cloth and let dough rise in warm place until doubled in size, 1-1 1/2 hours. Knead down again and let rise for 10 more minutes. On a lightly floured wooden board, use a rolling pin to flatten the dough into a 14 inch wide loaf. Brush the surface with the oil and sprinkle the sliced olives on the top. Roll up the dough tightly to form a cylindrical loaf. Place the loaf on a greased baking sheet. Cover with towels and let rise until doubled in bulk about 45 minutes.
With a razor blade, make diagonal cuts about 1/2 inch deep across the loaves top. Bake the bread in oven at 400 degrees for 35 minutes. Remove it from oven and let cool on wire rack.
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