If your machine has a “add nuts now” cycle – use it. My machine tends to pulverize any nuts, seeds or raisins I add, so I like to knead them into the dough before the last rise.
ADD TO BREAD MACHINE IN THIS ORDER:
1 cup water
3 Tablespoons walnut oil
1½ cups white bread flour
1 cup stone-ground whole wheat flour
2 teaspoons salt
1 teaspoon sugar
2½ teaspoons yeast
ADD LATER OR AT “ADD NUTS” CYCLE:
½ cup chopped walnuts
Use whole wheat/dough cycle, or cycle with longest rise time. When dough cycle has finished, roll dough out onto a floured board and let it rest for 10 minutes. Knead walnut pieces into dough, shape into a ball (or an oval loaf). Let rise (on a greased cookie sheet which has been sprinkled with cornmeal), covered in a warm place for 45-50 minutes, or until doubled. Slash decoratively with a razor blade if desired. Bake at 375° for 25-30 minutes.