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Combine milk, sugar, salt and oil in a large bowl and cool until lukewarm. Dissolve yeast in warm water and stir into the milk mixture. Add the onion. Beat vigorously for 10 minutes, gradually adding about 4 cups of the flour, until the dough begins to pull away from the sides of the bowl. Turn out on a lightly floured surface. Knead for 8 to 10 minutes, until dough is smooth and elastic, adding flour as necessary to prevent stickiness. Lightly oil a large bowl. Place dough in a bowl and turn to coat on all sides. Cover with plastic wrap and let rise in a warm, draft-free place until doubled in bulk — about 45 minutes.
Grease two loaf pans. Punch down the dough. Divide in half, shape into loaves, and place in the pans. Cover with a tea towel and let rise until doubled in bulk — about 20 minutes. Preheat the oven to 350 degrees F. Bake for 1 hour. Transfer to a wire rack to cool.