Add water, milk, egg, bread flour, brown sugar, white sugar, salt, ground cinnamon, yeast, and margarine to the bread machine pan in the order recommended by the manufacturer.

Select the Mix Bread cycle or the setting that adds mix-ins during kneading; start the machine.

Add chocolate chips at the manufacturer’s signal, or about 5 minutes before the kneading cycle is complete.

When the baking cycle is complete, carefully remove the loaf from the pan and transfer it to a wire rack. Let cool before slicing.