In a medium saucepan, combine whole milk, granulated sugar, unsalted butter, ground cinnamon, and salt over medium heat until the butter melts and sugar dissolves. Allow it to cool slightly.
Grease an 8-inch square baking dish and add the bread cubes evenly.
In a separate bowl, whisk together eggs and vanilla extract. Slowly pour in the cooled milk mixture while whisking to avoid cooking the eggs.
Pour the custard over the bread cubes, pressing the bread gently to soak. Let it sit for 20-30 minutes.
Bake for 40-45 minutes, or until golden brown and a knife inserted comes out clean.
While baking, prepare the vanilla sauce by combining whole milk, heavy cream, brown sugar, and butter in a saucepan until melted. Mix cornstarch with water and add it to the almost simmering mixture, stirring until thickened. Remove from heat and add vanilla extract.
Once the bread pudding is done, allow it to cool slightly before cutting into squares and serving with the warm vanilla sauce.
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Notes
Store leftovers in an airtight container in the refrigerator for up to three days.