Combine raisins and water in saucepan. Bring to a boil, reduce heat and cover. Simmer 20 minutes. Drain raisins, reserving liquid. Add enough water to reserved liquid to make 1/2 cup. Cool well. Cream together butter and sugar in bowl until light and fluffy, using electric mixeer at medium speed. Add eggs, beat 2 more minutes. Sift together flour and baking powder. Add flour mixture alternately with 1/2 cup of reserved raisin liquid into creamed mixture, mixing well after each addition. Stir in raisins. Spoon batter into greased 3-inch muffin-pan cups, filling 2/3rds full. Bake in 400 degree F. oven 18 minutes or until golden brown. Serve hot with homemade jam or jelly.