Soak raisins in hot water for 15 minutes, then drain thoroughly and pat dry.
Combine warm water and a pinch of sugar in a small bowl. Sprinkle yeast over top and let stand for 5-10 minutes until foamy.
In a stand mixer bowl, combine warm milk, activated yeast mixture, remaining sugar, salt, softened butter, and egg. Add flour one cup at a time, mixing on low until incorporated. Knead on medium for 6-8 minutes until smooth and elastic.
Add drained raisins to the dough and knead on low for 2 minutes until evenly distributed throughout.
Shape dough into a ball and place in a lightly oiled bowl, turning to coat. Cover and let rise in a warm place for 1-1.5 hours until doubled in size.
While dough rises, combine granulated sugar, brown sugar, and cinnamon in a small bowl. Set aside with melted butter.
Punch down dough and roll into a 9x14 inch rectangle. Brush with melted butter, sprinkle with cinnamon sugar, and roll tightly into a log. Pinch seam to seal.
Place shaped loaf seam-side down into a greased 9x5 inch loaf pan. Cover and let rise for 45 minutes to 1 hour until 1-1.5 inches above the rim.
Preheat oven to 350°F (175°C) during the last 20 minutes of the second rise. Brush top with milk or water and sprinkle with cinnamon sugar if desired.
Bake for 35-40 minutes until deep golden brown and internal temperature reaches 190-200°F (88-93°C). Tent with foil if browning too quickly.
Cool in pan for 10 minutes, then turn out onto a wire cooling rack. Cool for at least 30-45 minutes before slicing with a serrated knife.