Preheat your oven to 350°F (175°C). Cut day-old bread into 1-inch cubes and spread them out on a baking sheet. If the bread isn’t stale, toast the cubes in the oven for about 10 minutes until slightly dry and golden.

In a large mixing bowl, whisk together the large eggs, whole milk, heavy cream, granulated sugar, vanilla extract, ground cinnamon, nutmeg, and a pinch of salt until smooth and frothy.

Grease the baking dish generously with butter or cooking spray. Place the cubed bread into the dish and pour the custard mixture evenly over the top. Gently press down on the bread cubes to ensure they soak up the liquid. Let the mixture sit for 15 minutes.

Cover the dish loosely with aluminum foil to prevent browning. Bake for 30 minutes, then remove the foil and bake for an additional 15 minutes, or until the top is golden brown and the pudding is set.

While the pudding is baking, prepare the caramel sauce by combining granulated sugar and water in a saucepan over medium heat. Cook until the sugar dissolves and turns golden brown. Remove from heat and whisk in warm heavy cream, followed by butter and salt.

Let the pudding cool for about 10 minutes before serving warm with vanilla caramel sauce drizzled over each portion.