In a mixing bowl, combine 1 cup of warm water and the envelope of active dry yeast. Stir gently and let it sit for about 5 to 10 minutes, or until it becomes frothy.
Once the yeast is frothy, add 1/4 cup of honey and 3 tablespoons of melted, cooled butter to the mixture. Stir until well combined.
Mix in 1 teaspoon of salt, 1 1/2 cups of whole wheat flour, and gradually add 2 1/4 cups of bread flour. Use a wooden spoon or dough scraper to combine until a shaggy dough forms.
Transfer the dough onto a lightly floured surface. Knead for about 8-10 minutes until smooth and elastic. Add more bread flour if sticky.
Place the kneaded dough in a lightly greased bowl. Cover with a kitchen towel and let rise in a warm place for about 1 hour, until doubled in size.
Punch down the dough gently to release air. Shape into a loaf and place into a greased loaf pan.
Cover the loaf with kitchen towel and let rise for another 30-45 minutes, until puffy.
Preheat the oven to 350°F (175°C).
Brush the top of the dough with 2 tablespoons of milk and sprinkle oats generously over the top. Bake for 30-35 minutes until golden brown and hollow sounding when tapped.
Remove bread from oven and cool in pan for 10 minutes. Transfer to a wire rack to cool completely before slicing.