2/3 cup milk
1 egg
3 tablespoons water
2 tablespoons walnut oil or cooking oil
3 cups bread flour
2 tablespoons sugar
3/4 teaspoon salt
1 teaspoon active dry yeast or bread machine yeast
2/3 cup chopped black walnuts or English walnuts

Select the loaf size. Add the ingredients to the machine according to the manufacturer's directions. Select the basic white bread cycle.

Source: "The Complete Guide to Bread Machine Baking"

NOTES : For the 1-1/2 pound loaf, the bread machine pan must have a capacity of 10 cups or more.