In a mixing bowl, combine warm water with sugar and active dry yeast. Allow to sit for about 5 minutes until frothy.

Add all-purpose flour, salt, and dried Italian herbs, along with shredded mozzarella and grated Parmesan. Mix until dough forms.

Transfer dough to a lightly floured surface and knead for 8-10 minutes until smooth and elastic. Dust with extra flour as needed.

Place kneaded dough in a greased bowl, cover, and let rise in a warm area for 1-2 hours until doubled in size.

Once risen, punch down the dough, shape into a loaf, and let rest for another 30 minutes covered with a towel.

Preheat oven to 450°F (230°C), placing a pan of water on the bottom rack for steam.

Bake the shaped dough for 25-30 minutes until golden brown and hollow-sounding when tapped.

Cool on a wire rack for 10-15 minutes before slicing and serving.