Double-Apple Bread Pudding

 Adjust oven rack to middle position and heat oven to 325 degrees. Spread bread cubes in single layer on rimmed baking sheet. Bake, tossing occasionally, until just dry, about 15 minutes. Let bread cubes cool for about 15 minutes; measure out ¾ cup and set aside.

 Melt 2 tablespoons butter in 10-inch skillet over medium heat. Add ¼ cup sugar and water and whisk until sugar dissolves. Stir in apples, increase heat to medium-high, and bring to simmer. Cover and cook, stirring occasionally, for 4 minutes. Uncover and continue to cook until apples are translucent and just tender, about 4 minutes longer.

 Drain apples in fine-mesh strainer set over 2-cup liquid measuring cup, pressing gently to remove as much juice as possible. Set aside apples. Add enough milk to juice to yield 1¼ cups liquid.

 Combine ¼ cup sugar, cinnamon, vanilla, nutmeg, and salt in large bowl. Whisk in eggs. Whisk in cream and milk-juice mixture until combined. Gently stir in apples. Add remaining 5¼ cups bread cubes and toss to coat. Transfer mixture to 8-inch square baking dish and gently press down with spatula. Let soak for 30 minutes, pressing bread cubes into custard halfway through soaking.

 Toss reserved bread cubes with remaining 1½ tablespoons sugar in separate bowl. Use your fingers to crush bread to create mix of small and large pieces. Add melted butter and toss to combine. Press bread cubes into custard once more and sprinkle bread topping evenly over soaked bread mixture. Place dish on rimmed baking sheet and bake until bread pudding is golden brown and center registers 160 to 165 degrees, 1 hour to 1 hour 5 minutes. Transfer to wire rack and let cool until pudding is set and just warm, about 45 minutes. Serve.