Always by hand. Have baked since I was 12.
The 1940s cookbook I've used forever recommends temp 90-110. Bread machine yeast will tolerate temps to 120. I used to proof the yeast, but trust it's reliability, so I've switched to making a sponge, and letting it rise in a warm oven. A sponge is, for me, 1 cup of flour, all of the liquid, warmed to about 100 degrees, all of the fat, salt, yeast . After it rises an hour, I add 2 cups of flour and an egg, then turn it out on a board with a cup of flour to knead in. I do what you do-turn the oven on to get the oven barely warmer than room temp, and use the oven light to keep it cozy.
The old cookbook says to knead your dough (by hand) on a floured board, until it isn't sticky. Old time was about 20 minutes. I knead for about 10 and it does fine. When you knead, dust your hands and fingers with flour and turn your dough onto the flour. Knead by pushing the dough away from you, folding toward you and turning a quarter turn. Repeat the moves until all or most of the flour is absorbed. As you work the dough, you will notice that the surface will stop feeling sticky. It'll feel smooth. You might have some flour left on the board, or you might have to add a little more. If there isn't enough flour, the dough will be sticky and your bread might be gummy. If there is too much flour, the loaf is likely to be dry. No worries, bread is very forgiving. Not called the staff of life for nothing!
The more fat and sugar you add, the more tender your bread will be. If you let it rise 2 times before kneading, it'll have a finer texture. If you want the crust to be soft and chewy, butter the top when it comes out of the oven and cover the loaf, in its pan, with paper towels or a clean cloth. The steam will soften the crust.
Let us know how your bread turns out 
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