For this recipe, you will need a 1-pound loaf of bread. I prefer to use brioche, a slightly sweet egg bread with a dense crumb structure for more chew and decadence. Challah is a good substitute. French bread is another great option and will have a lighter texture since it’s a lean yeast dough.

How to Make Perfect Homemade Bread Pudding
1. Dry the Bread

To mimic using day-old or stale bread, cut the loaf into 1-inch pieces, then bake them in a 300-degree oven. This process will gently dry excess moisture on the surface, similar to making croutons. The dryness allows the sweet custard to absorb into the crumb for maximum flavor. This method also prevents the bread from instantly getting too soggy, and losing its structure

2. Temper the Custard
Bread pudding is a type of baked custard, so to ensure a velvety texture, you need to heat the eggs with the dairy and sugar gently. This process also helps to fully dissolve the sugar granules before it bakes for even dispersion.

Tempering the cool eggs with warm liquid creates a smooth consistency during cooking and prevents the proteins from turning into lumpy curds. The cream mixture heats to 120 degrees for gentle warming.

3. Soak the Bread
To ensure that the bread absorbs the custard all the way to the center, let it soak until hydrated and soft. This process takes about 30 minutes. Don’t skip this step, or the pudding will taste dry in parts instead of infusing together into smooth and creamy slices.

4. Bake Bread Pudding in a Water Bath
If you place the bread pudding on the oven rack, the direct heat will make the edges overly dry and the middle too custardy. To create an even consistency throughout, bake the dessert set inside a water bath. To make a water bath, just put the casserole dish inside a large roasting pan and pour in hot water until it reaches halfway up the sides.

The steam generated in the oven will gently cook the egg mixture and prevent hot spots. The result is a decadent souffle-like texture. This technique is also used for egg-based desserts like cheesecake to prevent cracking and retaining moisture.

5. Make a Bourbon Sauce