Creating Grandma’s Old-Fashioned Bread Pudding with Vanilla Sauce is simple if you follow these clear steps:

1. Preheat Oven: Preheat your oven to 350°F (175°C). Grease a 9×13 inch baking dish with butter.
2. Prepare Bread: In a large bowl, combine the cubed bread and milk. Let it sit for about 10 minutes to absorb the milk.
3. Mix Ingredients: In another bowl, whisk together the eggs, sugar, vanilla extract, cinnamon, and salt until well combined.
4. Combine Mixtures: Pour the egg mixture over the soaked bread. Gently fold in the raisins if using.
5. Transfer to Dish: Pour the mixture into the prepared baking dish. Drizzle the melted butter over the top.
6. Bake: Place the dish in the preheated oven and bake for 45-50 minutes or until the pudding is set and golden brown on top.
7. Cool: Remove from the oven and let it cool for at least 15 minutes before serving.

How to Make Vanilla Sauce

1. Combine Ingredients: In a saucepan, combine sugar and cornstarch. Gradually add the cream while stirring to avoid lumps.
2. Heat Mixture: Cook over medium heat, stirring constantly until the mixture thickens and comes to a gentle boil.
3. Add Vanilla: Remove from heat and stir in the vanilla extract.
4. Serve Warm: Drizzle the warm vanilla sauce over the bread pudding when serving.