The photos above illustrate the yeast blooming. The end picture is after the yeast is completely ready to add the other ingredients. This is typically referred to as the yeast being bubbly.
Next add 1/2 cup or 1 cube unsalted butter (you can add salted, but you will want to reduce the amount of salt added to the bread dough. Most butter has about 1/2-1 tsp salt per cube, so reduce the amount of salt about that much.) I like to add honey (1/2 cup) to bread, you can also use sugar (1/4 cup). Next add 2 tsp salt (when using unsalted butter.) Mix until combined. I do not add milk or milk powder to my bread as it makes the bread go bad faster. If you do add milk to bread you will want to use it within a day or two.
Just a quick reminder:
Now on to how to shape a great loaf of bread.