Step 1

Heat the oven to 350 degrees F.

Step 2

Butter a 4-6-cup baking dish.

Step 3

In a small saucepan over low heat, warm the milk, 2 tablespoons of the butter, 1 teaspoon of the vanilla, the cinnamon, 1/3 cup of the sugar, the nutmeg, and the salt.

Step 4

Cook the milk mixture until the butter melts and then allow it to cool.

Step 5

Fill the prepared baking dish with the cubed bread.

Step 6

Add the eggs to the cooled milk mixture and whisk to combine.

Step 7

Pour the milk mixture over the bread.

Step 8

Bake the pudding until the custard is set, but still a little wobbly, and the edges of the bread are browned, about 30-45 minutes.

Step 9

Melt the remaining butter in a medium saucepan over low heat.

Step 10

Add the remaining sugar, the cream, and the remaining vanilla and cook until the sauce is thick enough to coat the back of a spoon, about 5 minutes.

Step 11

Serve the pudding warm with the vanilla sauce.