1. Preheat the oven to 350°. Combine first 5 ingredients in a large bowl; stir well. Set aside.
2. Beat butter at medium speed of an electric beater until creamy; gradually add sugar, beating well. Add eggs, one at a time, beating after each addition. Add banana and milk to butter mixture; add dry ingredients, stirring just until moistened. Stir in nuts.
3. Pour batter into a greased and floured 5" x 9" loafpan. Bake at 350° for 1 hour or until toothpick inserted in center comes out clean. Cool in pan 10 minutes; remove from pan, and cool on a wire rack.