Blueberry Muffin Bread

3/4 cup milk
1 egg
3 tablespoons water
2 tablespoons margarine or butter, cut up
3 cups bread flour
3 tablespoons sugar
3/4 teaspoon salt
1/4 teaspoon ground nutmeg
1 teaspoon active dry yeast or bread machine yeast
1/3 cup dried blueberries
1/2 cup sifted powdered sugar (optional)
Milk (optional)

Add the first 10 ingredients to a 1-1/2- or 2-pound bread machine according to manufacturer's directions. Select the basic white bread cycle. If desired, in a small mixing bowl, stir together powdered sugar and enough milk (1 to 2 teaspoons) to make a glaze of drizzling consistency. Drizzle over cooled loaf. Makes 16 servings.