Frontier Bread Pudding

1/2 cup granulated sugar
3 to 4 cups milk
3 cups stale bread, cubed
3 eggs, beaten
1/2 teaspoon ground nutmeg
1 tablespoon butter, melted
1 teaspoon vanilla extract

Heat oven to 350 degrees F.

Dissolve sugar in 3 cups milk. Soak bread cubes for 30 minutes in milk to moisten thoroughly.

Mix eggs, nutmeg, melted butter and vanilla extract. Pour all into a large 9-inch bread pan or baking dish. Sprinkle top with extra granulated sugar and nutmeg. Bake about one hour in a pan of water. Chill bread pudding and serve sitting on a bed of warm cream.

Variation:
Add 1/2 cup raisins with the soaking bread.