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

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

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

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

Meanwhile, preheat the oven to 350°F. 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.

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.

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

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