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Grease 10" tube pan.
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Cut wax paper to fit bottom of pan, insert, grease and flour.
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Pour sherry on raisins.
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Heat oven to 275.
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Chop walnuts, grate orange and squeeze juice from orange.
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Sift flour with baking powder, salt and nutmeg, save 1/4 c of flour for nuts & raisins.
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Beat eggs until thick.
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Cream butter and sugar add in beaten eggs.
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Drain raisins (reserving liquid) and combine with nuts and the 1/4 c flour.
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Add juice of orange & sherry alternately with dry ingredients, combine all with the creamed butter/sugar/egg mixture and stir in vanilla.
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Add floured nuts and raisins last.
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Bake for 2 hours.
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Cool thoroughly before removing from tube pan.