Place all the ingredients except the pine nuts in the machine, program for Raisin Bread, and press start. When the beeper sounds, add the nuts. Pesto is a pungent Italain sauce made from ground-up basil, pine nuts, and Parmesan cheese. It used to be available only in the summer when fresh basil is plentiful. Now you can buy it in most grocery stores bottled, in the refrigerator case, or even in a tube. Home made may be the best, but store bought is just fine.
From "Bread Machine Baking" Lora Brodi & Millie Apter