Stir 1/4 cup warm water and yeast in large bowl. Let stand 10 minutes to dissolve yeast. Stir in remaining 1 1/2 cups water, 3/4 cup oats, honey, oil, and salt. Stir in enough flour to form soft dough. Coat another large bowl with oil. Transfer dough to oiled bowl and turn to coat. Cover with plastic wrap, then kitchen towel and let rise at room temperature until doubled in volume, about 1 hour.
Oil two 8 1/2- by 4 1/2- by 2 1/2-inch loaf pans. Punch down dough; shape into 2 loaves. Place 1 loaf in each pan. Cover and let rise in warm draft-free area until almost doubled in volume, about 20 minutes.
This recipe yields 2 small loaves.
Yield: 2 loaves