Mix water and milk in a small bowl. Sprinkle yeast on top and let sit 5 minutes to proof.
Whisk flour, salt, garlic powder, and onion powder in the bowl of a stand mixer. In another small bowl, mix together honey, eggs, and oil. Make a well in the dry ingredients and add the yeast and egg mixtures. Mix on low until flour is just moistened. Mix on high for 1 minute, until just mixed. Do not over-mix.
Spray an 8x4-inch loaf pan with gluten-free nonstick cooking spray. Line the inside edges of the pan with parchment paper, with 1-2 inches sticking up from the top of the pan. Pour in the dough and smooth the top with oil. Cut a slit down the center so the dough rises evenly and steam is able to escape. Drape with plastic wrap and let rise in a warm 75-80°F environment for about 1 hour or until the dough has almost doubled in size.
Preheat the oven to 350°F. Bake 65-70 minutes. Using an instant-read thermometer, monitor the internal temperature closely toward the end of the baking time to avoid drying out the loaf. The bread should be nicely browned and the internal temperature should reach 203°F.