Preheat the oven to 180 degrees Celsius (353°F). Heat the milk until bubbles are formed on the corners. Add the crushed bread to the milk. Add the vanilla essence, cinnamon, egg and powdered sugar. After 20 minutes or so, check on the bread pudding.
Once done, take a small pan to make the caramel. Add the butter and brown sugar and heat. After a minute add 1 tsp. of water.
Pour the caramel on top of the bread pudding and bon appetite.