In a saucepan, heat milk, water, and butter or margarine until warm.
In large mixing bowl, combine 2 cups flour, yeast, 1/4 cup sugar, salt, nutmeg, mace, and cloves; mix well. Stir in warm milk mixture and egg. Blend with an electric mixer at low speed until moistened; beat 3 minutes at medium speed. By hand, stir in raisins, cherries, citron, nuts, and enough remaining flour to make a firm dough.
Knead dough on a lightly floured surface until smooth and elastic, 5 to 8 minutes. Place in a greased bowl, turning to grease top. Cover. Let rise in warm place until doubled, about 1 hour.
Punch dough down. Shape into a round loaf, and place in a greased 2 quart casserole. Cover, and let rise in warm place until doubled, about 1 hour. Brush top of loaf with melted butter, and sprinkle lightly with 1 teaspoon sugar.
Bake at 375 degrees F ( 190 degrees C) for 40 to 45 minutes, until deep golden brown. If too dark, cover loosely with foil last 5 to 10 minutes of baking. Cool.
