Mix chives, oregano, thyme, rosemary, and basil in small bowl and set aside.
Place water and oil in bread machine.
Put sugar, salt, milk and flour into bread machine (in that order). Add yeast on top of flour.
Select 2 lb. loaf and preferred cycle and close the lid and start the bread machine.
When the machine beeps (or after everything is incorporated and mixed all around for a bit if there is no "add stuff beeper") scrape the sides of the bread pan if needed and add the herbs on top of dough.
Let the machine finish out the cycle.