Step 1: Prepare the Bread Base

Preheat oven to 350°F (175°C).

Lightly grease an 8×8-inch or similar baking dish.

Place the cubed French bread evenly into the prepared baking dish.

Sprinkle the raisins evenly over the bread cubes.

Step 2: Make the Custard Mixture

In a small saucepan over medium heat, combine the milk and 1/4 cup butter.

Heat until the butter is completely melted and the milk is warm (do not boil).

Remove from heat and allow to cool slightly.

In a mixing bowl, whisk together the granulated sugar, eggs, vanilla extract, and nutmeg.

Slowly pour the warm milk mixture into the egg mixture, whisking constantly to prevent curdling.

Step 3: Assemble the Pudding

Pour the custard mixture evenly over the bread and raisins.

Press the bread gently to ensure all pieces are soaked.

Let the mixture stand for 10 minutes so the bread absorbs the custard fully.

Step 4: Bake

Bake uncovered for 40–45 minutes, or until the pudding is set and the top is golden brown.

Remove from oven and allow to cool slightly before serving.

Step 5: Make the Vanilla Sauce

In a medium saucepan over medium heat, combine butter, granulated sugar, brown sugar, and heavy whipping cream.

Cook, stirring constantly, until the butter melts and the sugars dissolve.

Bring the mixture to a gentle boil and cook for 5–8 minutes, stirring continuously, until slightly thickened.

Remove from heat and stir in the vanilla extract.

Step 6: Serve

Spoon warm bread pudding onto plates.

Drizzle generously with warm vanilla sauce before serving.