Place 1 cup of the oats in the pan to your bread machine and pour the boiling water over them.
Stir to combine and let sit for 10 minutes.
Add the milk, molasses, butter, salt, bread flour, whole wheat flour, and yeast.
Select the dough cycle, and process according the the manufacturer’s instructions.
While the dough is processing, chop the remaining ⅓ cup of oats. Spray an 8 ½ x 4 ½ inch loaf pan with cooking spray.
Roll the dough onto a pastry mat and shape into a 12 x 8-inch rectangle. Bring the short sides to the center to form the dough into a log, overlapping slightly.
Flatten the dough so that it is even, and then roll the dough into a log.
Sprinkle the chopped oats onto a piece of parchment paper. Wet a kitchen towel completely and then wring it out. It should be damp, but not dripping.
Moisten the bread by rolling the log over the towel. Then roll it in the oats.
Place the bread, seam-side down, in the prepared pan.
Score diagonal marks into the bread.
Allow to rise at room temperature for 1 to 1 ½ hours.
Preheat the oven to 350°F.
Bake for 35 to 40 minutes, until the internal temperature reaches 190° F.
Immediately turn the bread out of the pan, and cool completely on a rack before slicing.