Break bread into 1/2 inch cubes, layer baking sheet and place in preheated oven to toast. Meanwhile, beat eggs, add sugar and blend well. Add vanilla and milk and stir until all ingredients are well mixed.
Toss toasted bread into melted butter until all butter has soaked into the bread. Put buttered bread into baking dish and pour liquid mixture over it.
Mash the bread down into the milk mixture for a few minutes so that it may soak up some of the milk. Sprinkle raisins, nutmeg and just a bit of cinnamon over the top. Again, push down into the milk a few times.
Bake at 400 until firm. May be served hot or cold. Variation: Add 1 package of melted chocolate chips to mixture.