Place milk in 1-quart saucepan; cook until milk almost comes to a boil. Stir in 1/4 cup butter until melted. Set aside; cool to lukewarm (105° to 115°F).
Place warm water and yeast into bowl; stir until dissolved. Add cooled milk mixture, 2 cups flour, 1/4 cup sugar, egg and salt. Beat at medium speed, scraping bowl often, until smooth. Stir in enough remaining flour to make dough easy to handle.
Turn dough out onto lightly floured surface; knead about 10 minutes until smooth and elastic. Place into greased bowl, turn greased-side up. Cover; let rise in warm place about 1 1/2 hours or until double in size. (Dough is ready if indentation remains when touched.)
Punch down dough. Cover; let rise in warm place about 45 minutes or until double in size. (Dough is ready if indentation remains when touched.) Punch down dough; divide in half. With floured hands, shape each half into 24 balls.
Combine 1 cup sugar, pecans and cinnamon in bowl; mix well. Dip balls first in melted butter, then in sugar mixture. Place 24 balls into bottom of greased 10-inch tube (angel food cake) pan or Bundt® pan. (If removable bottom tube pan, line with aluminum foil.) Sprinkle with raisins. Top with remaining 24 balls. Cover; let rise about 45 minutes or until double in size.
Heat oven to 375°F.
Bake 35-40 minutes or until coffee cake sounds hollow when tapped. (Cover with aluminum foil if coffee cake browns too quickly.) Immediately invert pan onto heatproof serving plate. Let pan stand 1 minute to allow sugar mixture to drizzle over cake. Remove pan; serve warm.