Whisk the eggs and water until frothy, then add sugar, a little at a time. Continue whisking until the mixture is thick and creamy.
Mix and sift together the flour and baking powder.Add to the eggs and mix well, and then gradually add in the apple preserves, flavoring, spices, nuts and candied peel.
Spread the mixture about 1/4 inch thick in a greased baking sheet. Preheat oven to very hot for 5 minutes. Bake at moderate hot oven (375F) for 15-20 minutes.
Make an icing with 3 1/2 oz confectioners sugar and 1-2 T. hot water or milk. Ice the bread while it is still hot, and slice into 1 x 2 inch slices.