In a large mixing bowl dissolve the yeast in warm water and the allow the mixture to sit for 3-5 minutes.
Add the milk, molasses, butter, salt, caraway seeds and the all purpose flour.
Mix very well until smooth and continue to mix for another 2-3 minutes at this stage (this helps to develop the gluten).
Add enough rye flour to make dough easy to handle and stir to incorporate as well as you can.
Remove the dough from the bowl and place it on a floured work surface.
Knead dough until smooth (about 10 minutes), gradually adding any remaining rye flour.
Place the smooth dough in a greased bowl (I just grease the one I mixed it up in).
Turn the dough around until greased side is up. Cover and let rise for 1 hour.
Punch down dough and remove it from the bowl onto a lightly floured surface.
Divide into two even pieces. Form each piece of dough into round loaves.
Place the shaped loaves on a parchment lined baking sheet and let rise until double (about 1 hour)
Bake at 425 degrees F. for 25-30 minutes or until the top is a deep brown.
Remove from the oven and allow to cool at least 30 minutes before slicing.
Notes
You can use light rye flour if that's what you have on hand. I like the dark rye as it lends to a little more flavor in my opinion. It's the whole grain version of light rye (like a whole wheat flour vs. all-purpose) and it adds a lot to the texture of the bread too.
Caraway seeds have a very specific flavor and I love them in rye bread. That being said, my kids don't love them. I'll often make a batch without them for them.
Be sure to store the bread in a paper bag or bread box rather than a plastic bag to keep it from getting soggy.
Rye bread freezes beautifully! Slice it before freezing so it is easy to pop in the toaster when you are ready to eat it.