Beat together butter and sugar until smoothly blended; add eggs, one at a time, beating well after each addition.
Mix in orange peel.
In a separate bowl, stir together flour, baking powder, salt, and nutmeg until thoroughly blended.
Add flour mixture alternately with milk to creamed mixture until well blended) then stir in poppy seed, nuts, and raisins, if used.
Turn batter into a well-greased and flour-dusted 9 by 5-inch loaf pan.
Bake in a 350° oven for 1 hour and 10 minutes or until bread begins to pull away from sides of pan and a wooden skewer inserted in center comes out clean.
Let cooll in pan for 10 minutes, then turn out onto a rack to cool completely.