YES!! Mine does a WONDERFUL job on a 2 1/2 cup loaf of bread. I've been doing bread this way for YEARS and my trusty DLC10 has never let me down. It only takes about 3 minutes to throroughly knead your dough to PERFECTION. In fact, I'd be happy to share recipes I use in it (white, whole wheat, rye, "pancake" bread, etc) if you want to make further contact.
I held off on answering this question, which I received yesterday in my email, so that I could make a loaf a bread and give a good answer. I made a 3-cup loaf of white bread. The kneading was spectacular! It was done in no time at all. The bread had good texture once it was baked, and I'm enjoying a tuna salad sandwich on homemade bread for lunch while I type this answer.
It can knead dough quite well. I tried mine first with a 10-grain recipe, and it did the job. The motor did bog down a little, but I was making a 2-lb dough that's thick and heavy. If you've ever used a bread machine, it turns on and off repeatedly during the knead cycle. You can mimic that with the processor using the power switch in the "pulse" position. Even if you make a lighter dough, put a few minutes into kneading and you should get good results. On the down side, 2 pounds is about the limit for the DLC-10S.
Yes! On pages 12-15 of the instruction booklet that comes with the processor, it tells you how to do it. I haven't done it yet, as I always make 3 loaves of whole wheat bread by hand. I should try it sometime. The machine certainly is sturdy enough to handle kneading dough! I'm glad to see another person, scgvegas, answered today; that's a ringing endorsement. Good success with making bread!
It probably can, but it is quite small. It would have to be a very small recipe. I didn't keep this processor, but replaced it with the 14 cup Cuisinart. The 14 cup processor can handle a recipe with 5 cups of flour or so without bogging down. Great machine.