Prepare Oven and Baking Dish: Preheat your oven to 350°F (175°C) to ensure it’s at the right temperature when the pudding is ready to bake. While the oven heats, lightly grease an 8-inch square baking pan using unsalted butter or non-stick spray. This will prevent the bread pudding from sticking to the dish and make for easy serving later. Once greased, set the pan aside for now.
Warm the Milk Mixture: In a medium saucepan, combine 2 cups of whole milk, ½ cup granulated sugar, 3 tablespoons unsalted butter, 1 teaspoon ground cinnamon, and ½ teaspoon salt. Place the saucepan over medium heat and gently warm the mixture, stirring occasionally to help the sugar dissolve and the butter melt evenly. Watch carefully and remove from heat just as the butter fully melts and the mixture becomes warm to the touch but not boiling. This warming process helps infuse the milk with cinnamon flavor and ensures the custard will blend smoothly.
Prepare Bread Cubes in Baking Dish: While the milk mixture cools slightly, take 6 cups of stale bread cut into roughly 2-inch cubes—brioche or challah work beautifully for richness—and spread them evenly in the greased baking dish. Distribute the cubes so there are no large clumps, which helps the custard soak each piece evenly.
Combine Eggs and Vanilla into Custard: Once the milk mixture has cooled enough to be warm but not hot (to avoid scrambling the eggs), whisk 3 large eggs into the saucepan, adding them one at a time. Whisk continuously as you pour to create a silky custard base. Follow by stirring in 1 tablespoon of vanilla extract to enhance the pudding’s aroma and sweetness. This custard mixture forms the luscious base that soaks into the bread cubes.
Pour Custard Over Bread Cubes: Carefully pour the custard mixture over the bread cubes in the baking pan. Use a spoon or spatula to gently press down on the bread, ensuring every piece absorbs the custard, especially the dry cubes on top that might otherwise remain untouched. For best texture and flavor, allow the bread to soak in the custard for 20 to 30 minutes at room temperature. This soaking step lets the bread soften and soak up maximum custard, resulting in a creamy, tender pudding after baking.
Bake Until Golden and Set: Place the baking dish on the center rack of your preheated oven. Bake for approximately 40 to 45 minutes, keeping an eye on the surface to achieve a golden-brown crust. The pudding is done when the top looks firm and lightly browned, and a knife inserted into the center comes out clean or with only a few moist crumbs. This baking process transforms the soaked bread and custard into a tender, custardy dessert with a crisp top.
Prepare the Creamy Vanilla Sauce: While the bread pudding bakes, start the vanilla sauce by combining 1 cup whole milk, 1 cup heavy cream, ½ cup packed light brown sugar, and 2 tablespoons unsalted butter in a medium saucepan. Place over medium heat and stir occasionally until the butter melts and the sugar dissolves fully. Allow the mixture to steam gently—avoid boiling.
Thicken the Sauce with Cornstarch: Meanwhile, dissolve 2 tablespoons cornstarch in ¼ cup cold water to make a smooth slurry. For a boozy variation, substitute water with bourbon or rum, adding a subtle kick to the sauce. Once the milk and cream mixture is steaming, slowly whisk in the cornstarch slurry. Stir constantly to avoid lumps, continuing until the sauce thickens enough to coat the back of a spoon. This thickening step is crucial for achieving a rich, velvety sauce.
Finalize the Vanilla Sauce: Remove the saucepan from heat and stir in 1 tablespoon vanilla extract or vanilla paste for intense flavor. Add a pinch of salt if desired to balance the sweetness. Taste and adjust as necessary. Keep the sauce warm or reheat gently before serving.
Serve with Warm Vanilla Sauce: Once the bread pudding is baked and slightly cooled, cut into portions and drizzle generously with the homemade vanilla sauce. Serve immediately while warm for the best flavor and texture experience. The combination of soft, custardy bread pudding and rich, creamy sauce creates a decadent dessert or comforting breakfast treat.