Preheat your oven to 350°F.
In a large bowl, combine the bread pieces and set aside.
In a separate bowl, whisk together the milk, sugar, eggs, and vanilla extract until well combined.
Pour the mixture over the bread, making sure to moisten all of the pieces.
Transfer the bread mixture to a greased baking dish and dot the top with butter.
Bake the bread pudding in the preheated oven for 45 minutes, or until it is golden brown and set in the middle.
Serve the bread pudding warm or chilled, garnished with a drizzle of caramel sauce or a sprinkle of powdered sugar. It can also be served with a dollop of whipped cream or a scoop of vanilla ice cream. Enjoy!