In a small bowl, dissolve the sugar in 1 cup of warm water (around 110°F or 43°C). Sprinkle the active dry yeast on top and let it sit for about 5 minutes until it becomes frothy.

In a mixing bowl, add the olive oil, salt, garlic powder, and dried Italian herbs to the yeast mixture. Stir in 2 cups of all-purpose flour, mixing until combined. Gradually add more flour until a soft dough forms.

Turn the dough out onto a floured surface, and knead for about 6-8 minutes until smooth and elastic.

Place the kneaded dough in a lightly greased bowl, covering it with a cloth. Set it in a warm spot and allow it to rise for about 30 minutes.

Once the dough has risen, punch it down gently and fold in the shredded mozzarella and grated Parmesan cheeses.

Shape the dough into a loaf and place it in a greased loaf pan. Let it rise for another 15-20 minutes.

Preheat your oven to 375°F (190°C) and bake the loaf for about 30 minutes until golden brown.

Allow the bread to cool in the pan for about 10 minutes, then transfer to a wire rack to cool completely.