Core, without cutting through bottoms, and place apples in terra cotta pot. Combine sugar, cinnamon, nutmeg, raisins and nuts. Fill centers of apples with sugar mixture, sprinkling any remaining mixture over tops of apples.
Dot apples with butter.
Pour water into base of terra cotta pot, cover with lid and place in oven. Set oven to 425 degrees F. and bake for 40 - 60 minutes, basting occasionally, until apples are very tender.