Grease and flour a 10x2-inch round tart pan with a removable bottom or an 11x7x2-inch baking pan; set aside.
For filling, in a small bowl place raisins. Pour enough boiling water over raisins to cover. Let stand for 5 minutes; drain thoroughly. Stir in preserves, cranberries, the 1/2 teaspoon orange peel, and the 1 tablespoon orange juice. Set filling aside.
In a large mixing bowl stir together flour and sugar. Using a pastry blender cut in butter until mixture resembles coarse crumbs. Set aside 1/2 cup of the flour mixture for crumb topping. Stir baking powder, baking soda, nutmeg, and salt into remaining flour mixture. Mix well. Make a well in the center. In a small bowl combine egg and buttermilk or sour milk. Add egg mixture all at once to the flour mixture. Stir just until moistened.
Spread two thirds of the batter into the prepared pan. Carefully spread the filling over the batter. Spoon remaining batter in small mounds over the filling. Sprinkle with reserved crumb mixture.
Bake in a 350 degree F oven for 35 to 40 minutes or until golden brown. Cool in pan on a wire rack for 25 minutes. Remove cake from tart pan or leave in baking pan.
Stir together powdered sugar, the 1/2 teaspoon finely shredded orange peel, and enough of the 1 to 2 teaspoons orange juice to make an icing of drizzling consistency. Drizzle over cake. Cut into wedges or squares. Serve warm. Makes 8 servings.