Place ingredients in bread machine pan in the order suggested by the manufacturer. Select white bread setting. 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 350 degrees F (175 degrees C) oven for 35 to 45 minutes or until a thermometer inserted in the center of the loaf reads 200 degrees F (95 degrees C).