In a large bowl, mix sugar, yeast, salt and 1 cup of flour.
In a small saucepan over medium heat, heat water, milk and butter, until butter is melted. Cool until mixture is lukewarm (about 120 degrees). Add liquid to dry ingredients and beat on medium speed for 2 minutes.
Stir in enough flour, one cup at a time, until a smooth dough is formed (you may not use the last 1/2 cup).
Turn dough onto a floured surface and knead until smooth and elastic, 5-6 minutes. Place dough in a greased bowl. Cover with plastic wrap and let rise in a warm place until doubled, about 1 hour.
Meanwhile, in a small saucepan, combine cranberries, brown sugar, cornstarch and water. Cook over medium heat until mixture thickens and cranberries burst, 10-15 minutes. Remove from heat and stir in butter, lemon juice and pecans; cool.
Punch down the dough and turn onto a lightly floured surface. Roll into a 10×20 inch rectangle. Spread the filling to within 1/2 inch of edges. Roll up jelly-roll style, starting with a long side; pinch seam to seal.
Transfer, seam side down, to a greased 9×5 inch loaf pan, arranging in a zigzag fashion to fit. Cover with a towel and let rise in a warm place until doubled, 30-40 minutes.
Preheat oven to 350 degrees. Bake loaf for 40-45 minutes or until golden brown. Cool in pan for 10 minutes before removing to a wire rack to cool completely.
Confectioners’ Sugar Icing (optional): Mix 3/4 cup confectioners’ sugar and 1 tablespoon milk. Drizzle over cooled bread.