1in a 3 quart rectangular baking dish arrange bread slices, peaches, and cream cheese cubes. In a large bowl, whisk together eggs, milk, whipping cream, sugar, vanilla, cinnamon, salt, and nutmeg; pour evenly over bread mixture. Cover and chill overnight.
2Preheat oven to 350°. Before baking, let bread stand for 15 minutes at room temperature. Uncover; bake for 40 to 50 minutes or until set.
3Just before serving, drizzle bread pudding with caramel sauce and sprinkle with pecans. Makes 12 servings
4to make cubing easier, place cream cheese in the freezer for 15 to 30 minutes.
Caramel sauce: in a medium heavy pan stir together 3/4 cup packed Brown sugar, 1/2 cup whipping cream, 1/2 cup butter and 2 tablespoons light color corn syrup . bring to boiling over medium high heat, whisking occasionally; reduce heat to medium. Boil gently for three minutes more. Remove from heat. Stir in 1 teaspoon vanilla. Let cool for 15 minutes. Store any leftover sauce in an airtight container in refrigerator for up to one week.