Add first 11 ingredients to a 1-1/2- or 2-pound bread machine according to the manufacturer's directions. Select the basic white bread cycle.
In a small mixing bowl stir together powdered sugar, cocoa powder, and vanilla. Stir in enough milk (1 to 2 teaspoons) to make a glaze of drizzling consistency. Drizzle over loaf. If desired, sprinkle with additional chopped pistachio nuts.