How can I refer to a nose in a pleasing manner?
While nose is indeed ok, and perhaps is best among it and its synonyms, you might metonymically or synecdochically use the word face instead. For example,
The smell of freshly baked bread wafted into the smiling, uplifted faces of passersby.
There is nothing wrong with nose. It is a perfectly polite, well brought up and pleasant word. It has no unpleasant connotations that I am aware of. If you really really don't want to use it, you could wax a little lyrical like so
The smell of freshly baked bread tickled the olfactory nerves of passers by.
This, however, is stilted and sounds pretentious. My friendly thesaurus (whom I recommend you befriend yourself) suggests:
adenoids, beak, bill*, horn, muzzle, nares, nostrils, olfactory nerves, proboscis, schnoz, smeller, sneezer, sniffer, snoot, snout, snuffer, whiffer
Of all these words, the best is the simple nose. I don't know why you are prejudiced against it.
I'd go a little more fanciful, yet, and say:
The smell of freshly baked bread wafted into the deepest pleasure senses and happy memories of the passers by.
Why do you think that nose is "on the nose' ? Just being a little nosy. I think "wafted" is a rather ordinary word that is overused. I would prefer something a bit more imaginative, for example, the smell of bread tantalized passers by.