Directions:
Preheat your oven to 325, then tear or cut the bread into 1" cubes.
Spread bread onto a baking sheet and bake for 10 minutes to lightly toast the bread.
After baking, let the bread cool in the oven for a few minutes to allow steam to evaporate.
While the bread is drying, prepare the custard.
In a bowl, whisk together milk, eggs, 1 cup applesauce, vanilla, sugar, and cinnamon.
Put bread into a large bowl, add craisins and nuts, then pour the apple cinnamon custard on top.
Stir to combine and allow the bread to soak for 15 minutes to absorb the custard.
Meanwhile, use 1 teaspoon of butter to grease a two-quart casserole dish.
Put the bread into the casserole dish and spread out evenly.
Cut the remaining butter into chunks and sprinkle it over the bread.
Bake bread pudding for 45 minutes, or until the internal temperature reaches 160.
Remove bread pudding from the oven then add the remaining 1/2 cup applesauce in dollops on top of the bread pudding.
Serve warm. Enjoy!