Preheat oven to 325 degrees. In a medium saucepan, combine water, apricots, raisins, and ¼ cup sugar. Bring to a boil, reduce heat, and simmer 15 to 20 minutes. Drain well, discard water, and set the apricot-raisin mixture aside to cool slightly.

In a large mixing bowl, beat the cream cheese, butter, and vanilla extract on moderately high speed until light and fluffy. Add 1-½ cups of the sugar and continue to beat until light. Add the eggs, one at a time, beating well after each addition.

Sift the flour, baking powder, and remaining ¼ cup sugar, and add gradually to the creamed mixture, combining well. Gently fold in the pecans and the apricot-raisin mixture. Turn into a greased and floured bundt pan.

Bake 70 to 80 minutes, until cake is golden brown and a wooden pick inserted in the center comes out clean. Cool at least 20 minutes before removing from the pan, then turn out onto a wire rack to finish cooling.