Preheat your oven to 350°F (175°C). In a large bowl, combine the cubed white bread and raisins.

In a saucepan, heat milk and butter together until the butter melts completely. Pour this mixture over the bread cubes and let it soak for about 10 minutes.

Add sugar, beaten eggs, vanilla extract, and nutmeg into the soaked bread mixture; stir well to combine everything evenly.

Transfer this combined mixture into a greased casserole dish that holds at least 1 ½ quarts.

Bake in your preheated oven for approximately 40–50 minutes until you see a golden brown top with a firm center; check doneness by inserting a knife, if it comes out clean, it’s ready.

For caramel sauce preparation, mix equal parts of butter and sugars in another saucepan over medium heat while stirring continuously until it thickens and starts boiling within about 5–8 minutes.