Add warm milk and butter to the bread maker pan.
Add flour, sugar and salt on top, keeping them separate from the water.
Make a small well in the flour and add the yeast.
Set your machine to 1.5 lb, light, and Basic or Sweet Bread cycle.
Add cranberries and walnuts to the dispenser or when your machine beeps for mix-ins, add the cranberries and walnuts. The dispenser only holds 1 cup so if you want more mix-ins add in extra cranberries and walnuts at this time.
Let the machine finish the cycle, then cool slightly before slicing.
Notes: *Baking time: Approximately 2 1/2 to 3 hours depending on your bread machine. Follow your machine instructions and settings. Time includes mixing, kneading, rising and baking which are done by the machine. *Use dried cranberries: Fresh or frozen cranberries add too much moisture and can affect the texture. *Check your dough: After a few minutes of mixing, the dough should form a smooth, slightly tacky ball. Add 1-2 tbsp flour or milk if needed. *Walnut swap: Pecans or almonds work great if you prefer a different nut. *Softer crust tip: Lightly brush the top with melted butter right after baking. *Room Temperature: Keep bread in an airtight container or wrapper tightly in plastic for 3-4 days. *Freezer: Slice the loaf, wrap each slice or whole loaf tightly in plastic wrap, then place in a freezer-safe bag. Freezes well for up to 3 months.