Place all of the ingredients except the chocolate chips and walnuts into the pan of your bread machine. Program the machine for raisin bread, if possible.
Check the dough after 10 to 15 minutes of kneading; it should have formed a smooth ball, soft but not sticky. If necessary, adjust the dough's consistency with additional water or flour. Add the chips and nuts at the signal; or, if you have no raisin bread cycle, add them about 3 minutes before the end of the second kneading cycle. Yield: one 6 to 7-inch loaf.