PREHEAT oven to 350° F. Lightly grease baking sheets.
COMBINE flour, granulated sugar, baking powder, baking soda and salt in large bowl. Add morsels, raisins and orange peel; mix well. Cut in butter with pastry blender or two knives until mixture resembles coarse crumbs. Combine buttermilk, 2 eggs and orange extract in small bowl. Pour buttermilk mixture into flour mixture; mix just until a sticky dough is formed. Do not overmix. Drop by 1/4 cupfuls onto prepared baking sheets. Combine remaining egg and milk in small bowl. Brush egg mixture over top of dough.
BAKE for 18 to 22 minutes or until wooden pick inserted in center comes out clean. For best results, bake one baking sheet at a time. Cool on wire racks for 10 minutes. Drizzle scones with icing. Serve warm.
COMBINE 2 cups powdered sugar, 1/4 cup orange juice, 1 tablespoon grated orange peel and 1 teaspoon orange extract in medium bowl. Mix until smooth.