Heat oven to 375° (quick mod.).
Line 12 medium muffin cups with paper baking cups.
Mix raisins and water in saucepan.
Cover and simmer 15 min.
Drain and save liquid.
Measure flour by dipping method or by sifting.
Stir flour, sugar, baking powder, salt, and spices in bowl.
Add shortening and liquid.
Beat 2 min. medium speed on mixer or 300 vigorous strokes by hand.
Scrape sides and bottom of bowl constantly.
Add egg.
Beat 2 more min., scraping bowl frequently.
Mix drained and cooled raisins with 2 additional tbsp. flour and nuts.
Fold carefully into batter.
Pour into baking cups, filling each about 1/2 full.
Bake 15 to 20 min., or until toothpick inserted in center of cupcake comes out clean.