Preheat oven to 425 F. Soak caraway seeds in boiling water 15 to 20 minutes. Place rye flour and sugar in a bowl and rub well between your fingers, breaking up any lumps of sugar.Sift all purpose flour, baking powder, and salt directly into another bowl and toss well to mix.Beat egg with molasses, milk, and oil until foamy, then stir in caraway seeds and water. Make a well in the center of the dry ingredients and pour in the milk mixture all at once. Stir quickly and lightly just enough to mix; batter should be lumpy. Spoon into muffin pans-bottom of cups should be greased but not the sides- filling each cup two thirds full. Bake about 20 minutes until lightly browned. Serve hot with lots of butter.