Start by preheating your oven to 350°F (175°C).
In a mixing bowl, whisk together the milk, eggs, vanilla extract, cinnamon, nutmeg, and sugar until well combined.
Take the bread slices and tear them into smaller pieces.
Place these bread pieces into the bowl of your milk mixture.
Allow it to soak for about 10 minutes. This ensures your Apple bread pudding has a nice, moist texture.
While the bread is soaking, peel and chop your apples into small chunks.
Melt the butter in a skillet on medium heat.
Add the apple chunks and cook until they’re just soft. This should take around 5 minutes.
Mix in the raisins to the skillet and stir for an additional 2 minutes.
Gently fold the apple and raisin mixture into your soaked bread.
Pour this mixture into a greased baking dish, spreading evenly.
Place the dish in the preheated oven.
Bake for about 45 minutes or until the top turns golden brown and the pudding has set.
Once baked, remove the Apple bread pudding from the oven and let it cool for at least 15 minutes before serving.