• Make the apple cider caramel sauce first. Either the day before or the morning of the day you make the bread pudding.

Apple Cider

• Place the apple cider in a 3-quart saucepan and bring it to a boil. Boil it until it is reduced to one (1) cup. Pour the cider into a measuring cup and let it cool to room temperature. This step can be done three (3) days in advance.

Apples

• Peal the apples and cut them into 1/2-3/4-inch dice. Melt 3 tablespoons of unsalted butter over medium heat in a non-stick 12-inch pan. Once the butter is melted, add all the apples and sprinkle the sugar over the apples. Use a spatula to toss the apples and sugar together until the apples are coated.
• Increase the temperature to high and cook the apples on high until most of the liquid is evaporated and the apples began to caramelize. Cooking the apples on heat will evaporate the liquid without overcooking the apples and turning them mushy.
• As the liquid starts to disappear occasionally turn the apples so most of the apples caramelize on both sides. When the liquid has completed evaporated remove the pan from the heat, sprinkle the apples with cinnamon, and stir the apples to mix in the cinnamon. Scrape the apples into a pie plate or large bowl and allow them to cool to room temperature.

Bread Pudding

• Preheat the oven to 350°F and butter a 13 by 9-inch baking dish. It should be at least 3 quarts. Cut the challah bread into 3/4-inch cubes.
• In a large bowl, whisk the eggs and then whisk in the granulated sugar, brown sugar, nutmeg, cinnamon and salt. Whisk in the milk, the cream, vanilla extract, and cooled apple cider. Whisk until thoroughly combined. Add the cubed bread and gently push the bread down into the liquid until the bread is submerged and all of it is wet. Let it soak for 15 minutes.
• Reserve 1/4 of the cooked apples and add the remaining cooked apples to the bread pudding mixture and gently fold into the mixture until thoroughly combined. Pour into the prepared baking dish. Spread the reserved cooked apples over the top of the bread pudding and then drizzle melted butter over the top.
• Bake the bread pudding for 45-60 minutes. The bread pudding should be golden brown, puffed up, and slightly firm in the center. Cool the bread pudding for at least 30 minutes on a wire rack to allow it to firm up.

Assemble

• Cut a piece of bread pudding (as big or as small as you want) and serve with apple cider caramel sauce or ice cream or both.

Storage

• The bread pudding can remain at room temperature the day it is made. Refrigerate the bread pudding for up to a week in an airtight container or wrapped in foil. Do not store the bread pudding overnight at room temperature.