Start by cutting your French bread or challah into cubes. You want them to be about one inch thick. This shape helps them soak up the custard beautifully. Feel free to use a day-old loaf; it dries out slightly, making it perfect for this casserole.
In a large mixing bowl, whisk the eggs. Add the milk, powdered sugar, lemon juice, lemon zest, nutmeg, cinnamon, and vanilla extract. Whisk everything together until it’s smooth and well combined. The mixture should be creamy, fragrant, and inviting.
Now, fold in the cream cheese until you have small pockets of cream cheese throughout the mixture. This is where the magic happens! Then add in about 1 cup of the blueberries and the chopped nuts, mixing gently.
Place the bread cubes into a greased baking dish. Pour the custard mixture over the top, making sure to coat each piece of bread. Press down gently to help the bread absorb the liquid. It’s okay if some cubes stick out; they’ll toast nicely in the oven.
Cover the dish with plastic wrap or aluminum foil and refrigerate it for at least 1 hour, but overnight is ideal. This soaking time allows the bread to soak up the custard, creating that delightful texture.
Preheat your oven to 350°F (175°C). Remove the casserole from the refrigerator and let it sit at room temperature for about 15-20 minutes before baking. This helps ensure even cooking.
Bake for about 40-45 minutes or until the top is golden brown and a toothpick comes out clean when inserted into the center. If the top browns too quickly, you can cover it loosely with aluminum foil halfway through.
Once out of the oven, let the casserole sit for about 10 minutes. This allows it to firm up slightly, making it easier to slice. Serve it warm, drizzled with strawberry coulis or maple syrup if desired.