Place milk, one egg, two tablespoons butter, salt, 3 tablespoons sugar, flour and yeast in bread machine pan. Select Dough cycle, and press start.
When cycle is complete, remove dough from machine, punch down, and let rest for 5 minutes. Roll out on lightly floured board into an approximately 24x10 inch rectangle.
Brush the dough with 3 tablespoons melted butter, then sprinkle with brown sugar, cinnamon, 1 cup nuts and raisins. Roll up tightly, jelly roll style from the longer side. Place on a greased baking sheet, shape into a ring, and seal ends. Mist with warm water, cover with plastic wrap which has also been mist with water, and let rise in a warm place until doubled in size, approximately 1 hour.
Preheat oven to 375 degrees F (190 degrees C). In a small bowl, beat together 1 egg and 1 tablespoon water; set aside.
Just before baking, brush dough with egg mixture, sprinkle with remaining 1/2 cup walnuts. Bake in preheated for 20 to 25 minutes. This is a dense ring and if it browns too quickly, just cover with foil and continue to bake.
