Dissolve sugar in tepid water in a small bowl. Stir in the yeast until dissolved. Set aside for about 10 minutes until frothy.
Sift flour into a large mixing bowl. Stir in wheat germ and salt, and mix in softened butter. Add in walnuts and raisins. Make a well in the centre and pour in dissolved yeast, fresh milk and water to form a soft dough.
Place the dough onto a lightly-floured surface and knead for about 10-12 minutes until it's even in texture, springy and no longer sticky.
Place dough in a covered bowl and leave aside until it doubles in bulk.
Lightly sprinkle the tabletop with flour and knead the dough for 2-3 minutes. Shape as desired and place onto lightly-greased loaf tins. Cover the tins with a clean damp tea towel or place them in roomy plastic bags. Leave aside to rise until the dough feels light and spongy.
Bake in preheated oven at 200°C for 10-15 minutes. Turn down the heat to 190°C and continue to bake until the loaves sound hollow when tapped on the underside.