Heat water until warm (105 degrees to 115 degrees).

Dissolve yeast in warm water in a large mixing bowl.

Add oil, honey and salt; mix well.

Add 1 cup of the bread flour, 3/4 cup of the whole wheat flour and dry milk powder to warm liquid mixture.

Beat on low speed with an electric mixer until moistened; beat 3 minutes at medium speed.

Stir in granola, cherries, remaining 1 cup bread flour, and remaining 1/2 cup whole wheat flour; mix until dough pulls cleanly away from sides of bowl.

On lightly floured surface, knead dough until smooth and elastic, adding more bread flour, if needed.

Place dough in a greased mixing bowl; cover loosely with plastic wrap and a cloth towel.

Let rise in a warm place (80 to 85 degrees) about 1 hour, or until double in size.

Punch down dough several times to remove all air bubbles.

Let rest 15 minutes.

Shape into a loaf.

Place in a greased 8-1/2 x 4-1/2 -inch loaf pan.

Cover; let rise in a warm place 45 to 60 minutes, or until double in size.

Bake in a pre-heated 350 degree oven 35 to 45 minutes, or until golden and loaf sounds hollow when lightly tapped.

Remove from pan immediately.

Cool on wire rack.

Serve warm or at room temperature.