Step 1

Grease an 8×8-inch casserole dish and set aside.

Step 2

Cut bread into 1-inch chunks and spread evenly in the bottom of the casserole dish.

Step 3

In a large bowl, whisk together the milk, eggs, sugar, butter, vanilla extract, cinnamon and nutmeg. Pour the mixture evenly over the bread, getting all the bread wet from the mixture.

Step 4

Let the bread sit for 20-25 minutes to soak up the milk and egg mixture.

Step 5

Meanwhile, preheat the oven to 350°F (176°C). Bake for 50-55 minutes. It should be jiggly, but set. The center should rise fully, so if it hasn’t yet, it might need a little more bake time. Remove from oven when done.

Step 6

While the bread pudding cooks, make the vanilla sauce. Melt the butter in a medium saucepan on low heat, then add the sugar, cream and vanilla extract.

Step 7

Slowly cook over low heat while stirring until the mixture coats the back of a spoon.

Step 8

Remove the sauce from the heat and serve warm over the bread pudding.