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Beat butter in mixer at medium speed till creamy; gradually add sugar, beating well. Add eggs, one at a time; beating after each one.
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Combine flour, baking powder, salt, and vanilla wafers; add to creamed mixture alternately with banana and milk, beginning and ending with flour mixture.
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Mix at low speed after each addition.
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Stir in 3/4 cup walnuts.
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Spoon batter into a greased and floured loaf pan.
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Sprinkle with remaining walnuts.
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Bake at 350 degrees for 55 minutes- 1 hour or till a toothpick comes out clean- loosely covering with foil after 45 minutes.
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Let cool in pan on a wire rack 10 minutes; remove from pan and let cool completely on rack.