Mix apples, 2/3 cup sugar, tapioca, cinnamon, nutmeg and water in large saucepan. Cook on medium heat, stirring constantly, until mixture comes to full boil.
Pour into 2-quart baking dish.
Sprinkle with raisins. Dot with 2 Tbsp. of the butter.
Cut remaining butter into flour, 2 Tbsp. sugar, baking powder and salt until mixture resembles coarse crumbs. Stir in milk until soft dough forms. Drop by tablespoonfuls onto hot apple mixture.
Bake at 375F for 30 minutes or until topping is golden.