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1. Add the first 7 ingredients to bread machine according to the manufacturer's directions. Select the dough cycle. When cycle is complete, remove dough. Punch down. Cover and let rest for 10 minutes.
2. Meanwhile, for filling, in a medium bowl stir together the walnuts or pecans, brown sugar, and cinnamon. Set aside.
3. On a lightly floured surface, roll dough into a 14x9-inch rectangle. Spread with 1 tablespoon margarine or butter and sprinkle with filling. Starting from both short sides, roll up each side into a spiral toward the center. Place, rolled side up, in a greased 9x5x3-inch loaf pan. Cover; let rise about 30 minutes or until nearly double.
4. Bake in a 350 degree F. oven about 30 minutes or until bread sounds hollow when lightly tapped. If necessary, loosely cover with foil the last 10 minutes to prevent over browning. Remove from pan; cool on wire rack. Before serving, sprinkle with powdered sugar. Makes 1 loaf (16 servings).