1. Combine 1 3/4 cups all-purpose flour, salt, yeast and caraway seed in a large mixing bowl.
2. Heat milk, water, molasses, and oil in a saucepan over low heat until very warm (120 F to 130 F)
3. Add liquid gradually to flour mixture, beating on high speed of electronic mixer, scrape bowl occasionally. Add 1 cup rye flour, or enough to make a thick batter. Beat at high speed 2 minutes. Stir in remaining rye flour and enough all-purpose flour to make a soft dough.
4. Turn dough onto a floured surface; knead until smooth and elastic (about 5 minutes).
5. Cover with bowl of pan and let rest 20 minutes.
6. Divide in half. Shape into 2 round loaves, place on greased baking sheets. Cover; Let rise until double in bulk (30 to 45 minutes0
7. Bake at 375 F 35 or 40 minutes, or until done.