Step 1
Put raisins in a bowl and pour in enough water to cover; set aside until raisins begin to plump at least 15 minutes.
Step 2
Dissolve yeast in warm water in a bowl. Let stand until the yeast softens and begins to form a creamy foam about 5 minutes.
Step 3
Heat milk and 1/2 cup butter together in a saucepan over medium-high heat until milk is heated just below boiling about 5 minutes. Remove saucepan from heat and cool scalded milk to lukewarm temperature.
Step 4
Beat 1 cup sugar eggs salt nutmeg and vanilla extract together in a bowl; add milk mixture and yeast mixture and stir until just combined. Drain raisins and stir into sugar mixture. Beat flour 2 cups at a time into sugar mixture beating well after each addition until dough is well mixed. Set bowl in a warm area of the kitchen cover with a clean towel and allow dough to double in size about 2 hours.
Step 5
Grease two 9x5-inch loaf pans.
Step 6
Beat dough down to release air and pour into the prepared loaf pans.
Step 7
Mix 1 cup sugar 1 cup flour and 1 tablespoon butter together in a bowl using 2 knives in a scissor-like fashion until crumbly; sprinkle over dough. Allow dough to double in size 30 to 45 minutes.
Step 8
Preheat oven to 310 degrees F (154 degrees C).
Step 9
Bake in the preheated oven until a toothpick inserted in the center of a loaf comes out clean about 45 minutes. Remove loaves from pans and cool on a wire rack.