Preheat the oven to 350°F. In a bowl soak bread in 2 cups of milk. Squeeze the bread with your hands to help the bread absorb the milk. In another bowl beat sugar and butter together with a hand mixer, until mixture resembles wet sand.

Add eggs one at a time, until eggs are fully blended. Add vanilla, salt, cinnamon, nutmeg. Mix in remaining milk, stir in bread and dried cranberries.

Butter an 8 x 8 or 9 x 9 casserole dish. Pour mixture into casserole dish, bake for 20 minutes. Reduce oven to 300°F and continue baking for 1 hour, bread pudding is done when the center has a slight jiggle but mostly stiff. Cool for 20 minutes before serving.

While bread pudding is baking, make bourbon sauce: Combine bourbon and sugar in saucepan and bring to a boil. A large flame of fire will happen; remain calm, cut the heat off until the alcohol burns off.

Add vanilla and turn heat to low and reduce by half. Cut off heat and whisk in butter 2 tablespoons at a time. Stir in heavy cream, sauce should coat a spoon.

Serve bread pudding warm or cold with bourbon sauce.