Grease bottom and side of loaf pan or 8 inch cake pan with 1 T butter.
Melt marmalade over low heat in a small pan; Pour it into loaf pan.
Sift the flour, baking powder, cinnamon and salt into a small bowl and set aside. In a large bowl, cream remaining butter and sugar together. Add eggs and mix well. Add the flour mixture, orange peel, vanilla, orange flavoring, milk and water and stir until batter is smooth. Pour into loaf pan on top of marmalade. Bake 40 to 50 minutes until toothpick comes out clean. Cool pudding in the pan for 10 minutes. Run a knife along the outside edge of the pan and invert onto a serving platter. Serve warm. DELICIOUS!