Bountiful blueberry bread

Ingredients:

1 cup plus 2 tablespoons water
1 egg
1/2 cup blueberry preserves
4 cups bread flour
3 tablespoons dry milk
1 1/4 teaspoons salt
1 teaspoon bread machine yeast
1/3 cup dried blueberries

Preparation:

Measure carefully, placing all ingredients except dried blueberries in bread machine pan in the order recommended by the manufacturer.
Select Sweet or Basic/White cycle.
Use Medium or Light crust color.
Do not use the delay cycle.
Add dried blueberries at the beep signal or 5 minutes before the last kneading cycle ends.