Preheat the oven to 350°F (175°C). Grease a 9×9-inch baking dish with butter or cooking spray.
In a large mixing bowl, whisk together the eggs, milk, heavy cream, sugar, cinnamon, nutmeg, salt, and vanilla extract.
Add the cubed bread to the egg mixture, gently stirring to ensure all the bread is coated. Let it soak for 10-15 minutes, pressing down occasionally so the bread absorbs the custard mixture.
Prepare the Apples:
While the bread is soaking, heat a skillet over medium heat and add the butter.
Once melted, add the chopped apples and cook for 5-7 minutes, until the apples begin to soften and become slightly caramelized. Stir in a pinch of cinnamon if desired.
Remove from the heat and set aside.
Assemble the Bread Pudding:
Stir the cooked apples into the soaked bread mixture and gently fold them in.
Pour the entire mixture into the prepared baking dish, spreading it evenly. Place the cubed butter over the top of the pudding mixture.
Bake the Bread Pudding:
Bake for 35-40 minutes, or until the top is golden brown and the custard is set. You can test it by inserting a knife or toothpick into the center; it should come out clean when done.
Make the Caramel Sauce (Optional):
While the bread pudding bakes, make the caramel sauce by melting the butter in a small saucepan over medium heat.
Stir in the brown sugar, heavy cream, and salt. Bring to a gentle simmer and cook for 5-7 minutes, whisking occasionally, until the sauce thickens. Remove from heat and stir in the vanilla extract.
Serve:
Once the bread pudding is done baking, remove it from the oven and let it cool slightly before serving. Drizzle with the homemade caramel sauce, if desired, and serve warm.
Serving and Storage Tips:
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