Scald milk, remove from heat and stir in 1/8 cup of butter. Allow mixture to cool to room temperature. In a large bowl, dissolve yeast in the warm water with 1/2 tablespoon of the white sugar. Let stand until creamy, about 10 minutes.
When yeast mixture is bubbling, add the cooled milk mixture. Whisk in the eggs. Stir in the remaining white sugar, salt and nutmeg. Beat the flour into the milk/egg mixture 1 cup at a time. When the dough has pulled together, turn it out onto a lightly floured surface and knead until smooth and elastic, about 8 to 10 minutes.
Lightly oil a large bowl, place the dough in the bowl and turn to coat with oil. Cover with a damp cloth or plastic wrap and let rise in a warm place until doubled in volume, about 2 hours. When risen, punch down and divide dough in half.
To Make Filling: Combine the brown sugar, ground cinnamon, chopped pecans, 1/2 cup flour and 1/2 cup raisins. Pour 1/2 cup melted butter over the cinnamon mixture and mix until crumbly.
Roll dough halves out into a large rectangle (approximately 10x16 inches or so). Sprinkle the filling evenly over the dough and roll up tightly like a jelly roll, beginning at the wide side. Bring the ends of the roll together to form a circular shaped ring. Place ring on a prepared cookie sheet. With scissors make cuts 1/3 of the way through the ring at 1 inch intervals. Let rise in a warm spot until doubled in size, about 45 minutes.
Preheat oven to 375 degrees F (190 degrees C). Grease a cookie sheets or line with parchment paper.
Bake in preheated oven for 30 minutes. Push the doll into the bottom of the cake. Frost while warm with the confectioners' sugar blended with 1 to 2 tablespoons of water. You can also use a whole pecan hidden in the ring before baking. Plastic baby should only be inserted AFTER baking.