Closely adapted from my Vinho Verde Pound Cake, in turn closely adapted from Southern Living.
Preheat oven to 325 F. Grease and flour a 12 cup bundt pan. Set aside. (I like to use a smaller bundt pan plus some mini loaves and then adjust the baking time accordingly so I can use the more interesting bundt pans.)
Stir together milk and wine and then set aside to let stand for 10 minutes.
Beat the butter at medium speed with an electric stand mixer until creamy. Gradually add the sugar, beating at medium speed until light and fluffy. Add eggs, 1 at a time, beating just until blended after each addition. Beat in the vanilla and Strega extracts.
Scrape the batter into the prepared pan(s) and bake for 65-70 minutes for a 12 cup bundt, or until a cake tester inserted in the center comes out clean (reduce the time for smaller cakes and pay attention to your nose). Cool in pan on a wire rack 10 to 15 minutes; then invert cake onto a wire rack. Place foil underneath the rack to catch the glaze.
I have never even smelled proper Strega liquor let alone tasted it, but I would not hesitate to use it in place of the extract. Start with 1 tablespoon and let your nose be the guide.