A biopsy taken from a granulomatous lesion of nose revealed Mikulicz's cells and eosinophilic structures in the cytoplasm of the plasma cells, the likely diagnosis is:

Mikulicz's cells are foamy histiocytes teaming with gram-negative coccobacilli in the cytoplasm.Eosinophilic structures seen in the cytoplasm of plasma cells are called Russell bodies. Both these structures are characteristics of rhinoscleroma. Diagnosis of rhinoscleroma is made on biopsy and culture of tissues for causative bacilli.