Scalding the milk means to bring it up to 195F.
Let the milk cool to 140-150F, pour into a large mixing bowl, add the cold water and the temperature should be around 115F
In a separate bowl, activate the yeast in 1 cup warm water, and whisk in the sugar. Let it sit for 5-15 minutes - at least 1/2" layer of bubbles on top.
Gently whisk the yeast mixture into the milk, and then stir in the rest of the ingredients.
Knead for 10-15 minutes, until the dough pulls cleanly from the edge of the bowl. If it seems too wet, keep kneading for another minute before adding 1 tbsp of flour. If it seems too dry, add 1 tbsp water and knead for another minute before making any more adjustments.
Form the dough into a ball, and either spray with oil, or lightly brush with oil, cover, and put in a warm place for 1-2 hours (until it doubles in size.
Punch the dough down to deflate, and consider letting it rise again if you have time.
Form the dough into the shapes you want, let rise for at least half an hour in that shape or container, then bake at 350 for 10-30 minutes (small rolls to larger loaves), until golden brown, and internal temperature is 190F.
Small rolls can be eaten fresh, loaves should be left to cool to room temperature on a rack.