Bread-Bakers v104.n012.11

I have a Panasonic Bread Machine and have bypassed this recipe many times, 
thinking that lemon poppy seed as anything but a quick bread/muffin sounded 
a bit odd.  Now I will definitely try it out.  I assume the Lemon Peel 
should be the dried kind in a jar, not fresh zest.

Poppy Seed-Lemon Bread

2 1/4 cups bread flour
1 Tbsp sugar
1 Tbsp dry milk
1 tsp salt
1 Tbsp butter
2 Tbsp poppy seeds
1 Tbsp lemon peel
15/16 cup (7 1/2 fl. oz.) water
1 tsp dry yeast

 From the Panasonic Bread Bakery SD-BT55P Operating Instructions and 
Recipes manual.

Place ingredients in pan in order given.  Put yeast in dispenser.  Use 
Basic Bake mode.

I have owned this machine about twelve years now, and it works well but has 
a very small capacity - 2 1/4 cups of flour.  I can go up to about 3 1/4 
cups in Dough mode, if I take the dough out before the end of the cycle, so 
it doesn't overflow the pan.  I can't bring myself to get rid of it because 
it is so reliable, and can't get a new, larger capacity one until I do.  A 
question: Do larger capacity machines handle small amounts well, or if I 
get a newer machine, will I be stuck making only large loaves?