Dissolve sugar in water, then stir in yeast. Allow to stand until yeast starts to foam and rise, about 15 minutes. Pour into bread machine. Add dry ingredients. Set bread machine to dough only and start.
When the dough cycle is complete, remove dough and work lightly on a floured surface to remove any air bubbles. Form dough into a loaf and put in a greased loaf pan. Prick loaf with a fork to remove any remaining air bubbles.
Put in a warm place and allow to rise until doubled in size, about 30-45 minutes. Bake in a preheated 350 degree oven until golden brown. Remove from pan and cool on a wire rack.