Preheat your oven to 350°F (175°C). Prepare your mixing bowls and greased casserole dish.

In a large bowl, combine cubed stale bread and raisins. Warm milk and butter in a saucepan until butter melts, then pour over bread. Let it soak for 10 minutes.

Add sugar, eggs, vanilla extract, and ground nutmeg to the soaked mixture. Mix thoroughly until well combined.

Pour the mixture into a greased casserole dish. Bake for 40-50 minutes until the center is set and a toothpick comes out clean.

For the caramel sauce, combine butter, sugar, and brown sugar in a saucepan. Heat until thickened, then stir in heavy cream and vanilla extract.

Cut the pudding into portions, drizzle with warm caramel sauce, and serve.