Place ingredients in bread machine pan in the order suggested by the manufacturer. Select white bread setting. Press Start.
To bake bread in oven: Select dough or manual cycle. Once cycle is complete, shape dough and place in a greased loaf pan. Allow to rise in a warm spot until doubled in size. Bake in a preheated 180 degrees C oven for 35 to 45 minutes or until a thermometer inserted in the centre of the loaf reads 95 C.