Add the first 9 ingredients to a 1-1/2- or 2-pound bread machine according to the manufacturer's directions. Select the dough cycle. When cycle is complete, remove dough from machine. Punch down. Cover and let rest for 10 minutes.
Divide the dough into 24 portions. On a lightly floured surface, roll each portion into a smooth 10-inch-long rope. Form each rope into an "S" shape and curve each end into a coil. Cross 2 of these "S"-shape ropes to form an X. Repeat with the remaining "S"-shape ropes. Place ropes on a greased large baking sheet. Cover and let rise in a warm place about 30 minutes or until nearly double.
In a small bowl combine the beaten egg and water; brush over buns. Place 1 raisin in the center of each coil. Sprinkle the buns with granulated sugar. Bake in a 375 degree F oven about 10 minutes or until golden brown. Remove from baking sheet; cool on a wire rack.