In a microwaveable bowl, combine raisins and water. Microwave for 3 minutes, then set aside for at least 5 minutes to allow raisins to absorb water.
In a medium bowl, combine butter, sugar, egg, milk and vanilla until uniform.
In a large bowl, stir together flour and baking powder.
Pour butter mixture into flour mixture and stir to combine.
Drain 1/4 cup water from raisins and set aside, then pour the raisins and remaining water into the butter/flour mix and stir until a dough ball forms, adding additional water 1 tbsp at a time from the reserve as necessary.
Coat the inside of a 7 inch cake pan with nonstick spray, then pat dough into the pan and cover loosely with foil - do not seal.
Pour the 250ml water in the Instant Pot and insert the steam rack. Carefully lower the cake pan on to the steam rack and secure the lid.
Select Pressure Cook and set the time for 45 minutes.
When the cooking program has finished, let the pressure naturally release for 15 minutes, then quick-release the remaining pressure and remove the lid.
Keeping the pan in the Instant Pot, sprinkle 1 tsp of sugar onto the bread
Using the Air Fryer lid, place this on top of the Instant Pot and select Broil/Grill and set the time to 3 minutes and temperature at 180°C.
When the Broil/Grill program is finished, turn the Instant POt off completely and allow the pan to sit undisturbed until the pan is cool enough to handle, at least 30 minutes.
Release the soda bread from the pan, slice and serve