Dissolve yeast in 1/4 cups of warm water. Add milk, butter, salt and sugar. Stir until well blended
Add the green chile and cheese, mix until well blended. Sprinkle 3 cups of flour into this mixture and using a dough hook (or a large spoon) mix until well blended.
Add remaining flour to make a soft dough. Place dough in a greased bowl and let rise for 1 1/2 hours.
Remove from bowl. Place in two greased loaf pans
Cover and let rise in a warm place for about 45 minutes