Steps:
- Preheat the oven to 350°F. Place the bread cubes on a rimmed sheet pan and bake for 5 minutes, or until toasted to a light golden color. Remove the toasted cubes from the oven and place in the bottom of a 2-quart casserole dish.
- In a medium saucepan, combine the milk, heavy cream, and butter. Warm over low heat until the butter melts; set aside.
- In a medium bowl, whisk together the eggs, sugar, vanilla, flour, and cinnamon and beat well. With a wooden spoon, stir in the chopped peaches and the warm milk mixture. Pour the custard over the toasted bread cubes. Bake for 55 minutes, or until the center of the casserole is firm.
- To make the vanilla-peach sauce, combine the cream, sugar, and peach nectar in a small saucepan and bring to a boil. Whisk the cornstarch with the water together in a small bowl, then stir into the boiling liquid. Reduce the heat and simmer for 1 minute, then stir in the vanilla and salt. Remove from the heat.
- Cut the warm bread pudding into individual portions and top with warm vanilla-peach sauce.
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