Preheat oven to 350 degrees F.
Cut the bread into bite-sized cubes.
Lightly butter a 9 inch pie pan or an 8 x 8 square pan.
Put the cubed bread into the prepared pan. Set aside.
In a mixing bowl, or bowl of a stand mixer, combine eggs and sugar.
Beat on high for 1 minute.
Add vanilla, butter and milk.
Beat on high again for 2 minutes.
Place the baking dish with the bread in a bigger oven-safe vessel. Add water so it goes up the baking dish about 1/2 inch.
Pour egg mixture over bread cubes. Use a spatula to press the bread cubes into the egg mixture.
Let rest for 15 minutes so the bread can soak up the egg & milk mixture.
Place your pans in the oven.
Bake for 55 - 70 minutes. Bread should be golden, and the middle should be set when touched.
Serve warm with whipped cream or dust pudding with powdered sugar.
To store cover tightly and place in refrigerator.