Preheat oven to 325 degrees. Grease and flour bundt pan. In saucepan combine water, apricots, raisins and ¼ cup sugar, bring to a boil, and let simmer for 15-20 minutes. Drain well and set aside.
In mixing bowl combine 1-1/2 cup sugar, softened cream cheese, butter and vanilla. Beat until creamed. Add eggs; beat one at a time. Sift dry ingredients, and add gradually.
Gently fold into apricot mixture and add nuts. Turn into pan. Bake 65-70 minutes. Cool completely on wire rack. Wrap in foil and store overnight before serving or freezing.