Pre-heat oven to 350°F.
In your mixer, in a large bowl, beat together the shortening and the sugar. (Mix on medium-high for about 4 minutes, until light in texture, and little air bubbles are visible)
Beat in the eggs, pumpkin, water and vanilla.
Add the flour, baking powder, baking soda, salt, nutmeg, stirring to blend.
Use a wooden spoon to mix in the butterscotch morsels.
Spoon the batter into two well-greased 9" x 5" loaf pans.
Bake the bread for 1 hour, or until a toothpick inserted in the middle come out clean.
Remove the bread from the oven and cool for at least 30 minutes on a rack. Slide a sharp knife along the edges of the bread in the pan to help loosen the bread away from the pan. Carefully invert the pan, tap a couple times on the bottom and remove the bread. Set upright on a baking rack. Let cool completely, about 2 hours.
In a small-medium bowl, mix together that confectoners sugar, melted butter, milk and vanilla. Drizzle over the bread with a spoon.
Slice and serve, or loosely wrap in plastic wrap until ready to serve.