I have a Samsung Galaxy and I had the same issue as you. Here's how to fix it:
In device manager on your Windows PC, even though it might say the USB drivers are installed correctly, there may exist corruption.
I went into device manager and uninstalled SAMSUNG Android USB Composite Device and made sure to check the box 'delete driver software'. Now the device will have an exclamation mark etc. I right clicked and installed the driver again (refresh copy). This finally made adb acknowledge my phone as an emulator.
As others noted, for Nexus 4, you can also try this fix.