In a saute pan, heat a 2 tablespoons of olive oil and add the onions. Cook until lightly browned but not fully caramelized. Set aside to cool.
In a bowl, mix the dry ingredients: flour, baking powder, and salt. Add the Sauteed onions to the dry ingredients. Then add the water, olive oil, thyme, and olives. Mix until well blended and a dough has formed. Turn out on a floured board and knead the dough until soft and smooth, about 5 to 8 minutes. Cover with a towel and let sit for about 20 minutes.
Preheat oven to 400 degrees F.
Shape the dough into a large ball and place in a greased loaf pan. Bake for 1 hour and until the bread is golden brown. When the bread is 10 minutes out from being done, brush the surface lightly with milk to give it a gloss. Remove the bread from the oven and place on a rack to cool.