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Preheat oven to 350°F. Grease and flour the bottom and 1/2 inch up the sides of a 9-by-5-inch loaf pan. In a small bowl, combine 1/3 cup sugar, nuts and cinnamon; set aside. In a large bowl, combine the remaining 1 cup sugar, flour, baking powder and salt. In a medium bowl, beat egg with a fork; stir in milk and oil. Add egg mixture all at once to flour mixture. Stir just until moistened (batter should be lumpy).
Pour half of the batter into prepared pan. Sprinkle with half of the cinnamon mixture. Repeat with remaining batter and cinnamon mixture. Draw a wide rubber scraper down through batter and up in a circular motion to marble. Bake for 45 to 50 minutes or until a wooden toothpick inserted near the center comes out clean.
Cool in pan on a wire rack for 10 minutes. Remove from pan. Cool completely on wire rack. Wrap and store bread overnight before slicing.