Preheat your oven to 350°F. Melt your butter on the stove or by microwaving on high in 20-second intervals, stirring in between until completely liquefied. Set melted butter aside to cool.
2 tablespoons unsalted butter
Cut your bread into cubes, about 1-inch long on each side, and set aside.
10 slices stale bread
In a large mixing bowl, whisk together eggs, milk, sugar, vanilla extract, and your cooled melted butter.
2 large eggs, 2 cups milk, ⅓ cup granulated sugar, 1 teaspoon vanilla extract
Fold in your cubed bread and stir to coat. At this point, it should be a wet mixture with a little excess liquid.
Transfer the bread mixture to a baking dish. You can use a 13.5-inch oval, an 11.5-inch square, or a 13 x 9-inch rectangular casserole dish. Bake for 40-45 minutes until the top starts to turn golden brown.
Pour caramel sauce over top while it's still warm and allow it to sink into the bread pudding as it cools. You can use storebought caramel sauce or whip up the homemade caramel sauce below while your bread pudding is baking.
⅓ cup caramel sauce