Dissolve yeast in the lukewarm water. In a large bowl, combine butter, sugar, salt, milk, cold water, and dissolved yeast.
Beat in the egg, raisins and 1/4 cup poppyseeds until thoroughly mixed. Add the flour and beat until a smooth dough forms.
Grease a loaf pan (we ommited this and formed a round loaf) and pour mixture into it.
Cover with greased plastic wrap and let rise for about 2 hours.
Heat the oven to 180°C. Bake 50-60 minutes or until done.
Warm honey and brush over bread. Sprinkle with 1 tablespoon poppyseeds and return to oven for 5 minutes.
Remove and invert onto a wire rack to cool completely.