Prepare a 9 x 13 dish by spraying with nonstick spray
Spread the cubed bread evenly in the bottom of the baking dish.
In a large mixing bowl whisk together the eggs, milk, both sugars, vanilla extract, cinnamon, and nutmeg. Mix until all ingredients are well incorporated.
Pour the egg mixture over the bread cubes. Allow this to sit for about 10 minutes.
After the bread mixture has set for 10 minutes, drizzle the 4 tablespoons of melted butter on top of the soaked bread cubes.
Place the baking dish in the oven and bake for 45 minutes.
While the bread pudding is baking, in a medium sized saucepan, combine the light brown sugar, heavy cream, and butter to make your caramel sauce. Heat this mixture over medium heat.
Whisking intermittently, cook the carmel mixture for 5 to 6 minutes .
Remove the caramel sauce from the heat and whisk in the ½ teaspoon of vanilla extract.
Pour the caramel sauce over the bread pudding, immediately after removing the pudding from the oven. Serve while warm.
This recipe is normally served hot, but can be served cold if you prefer.Stale bread is best for this recipe since it soaks up the liquid so much better than fresh bread. Any type of stale bread can be used, though French, Italian, brioche, or Challah bread adds good flavor.Sprinkle toasted coconut or slivered almonds as a garnish. Vanilla ice cream also pairs well!