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Combine the milk, yeast and 1 tablespoon of sugar in a small bowl. Set aside in a warm, draught-free place for 10 minutes or until frothy.
Combine the milk mixture, butter and egg in a jug and whisk to combine. Combine 4 cups (600g) of flour, salt, mixed spice and remaining sugar in a bowl. Add the sultanas, currants and mixed peel and stir to combine. Make a well in the centre. Pour in the milk mixture and use a wooden spoon to stir until just combined, then use your hands to bring the dough together.
Turn onto a lightly floured surface and knead for 10-15 minutes or until smooth and elastic. Place the dough in a bowl and cover with a damp tea towel and place in a warm, draught-free place for 1 hour or until dough doubles in size.
Preheat oven to 200°C. Grease a 23cm square cake pan. Punch the dough down with your fist. Turn dough onto a lightly floured surface and knead for 2-3 minutes or until dough is smooth and elastic. Divide dough into 16 even pieces and shape each portion into a ball. Arrange dough portions, side by side, in the prepared pan. Set aside in a warm, draught-free place for 30 minutes or until dough has risen 2cm.
Meanwhile, mix the remaining flour and water together in a small bowl until a smooth paste forms. Place in a small plastic bag and snip off the end. Pipe a continuous line down the centre of each row of buns, lengthways and widthways, to form crosses. Bake in preheated oven for 10 minutes. Reduce heat to 180°C and bake for a further 20 minutes or until golden and cooked through (buns are ready when they sound hollow when tapped on the base).
Turn onto a wire rack. Place the jam in a small saucepan over high heat. Cook, stirring, for 2 minutes or until jam melts. Strain through a fine sieve. Brush hot jam over the buns. Serve warm with butter, or toasted.