Cut the bread into slices. If slices are too large, cut them in half. Place on a rimmed baking sheet and toast in the oven on broiler setting for about two minutes on each side, or until they are crisp and golden brown in color. Remove from the oven and let cool.
Meanwhile, melt one tablespoon butter in a skillet over medium heat. Add the grated apples, ¼ cup brown sugar, and cinnamon. Sauté until apples slightly soften about 4 minutes. Let cool.
In a large bowl mix the eggs, half &half, salt, and the remaining sugar. Fold in the apple mixture. Add the toasted bread slices and soak for 10-15 minutes.
Preheat oven to 375 degrees F.
Using the remaining butter, grease a 10 inch round or square baking dish. Layer bread slices. Pour the remaining egg mixture over the bread.
Bake for 45 minutes. To serve, dust with powder sugar and drizzle with caramel sauce.
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Notes
Don’t worry about placing bread slices into the baking dish neatly. You want some uneven height. Those pieces will be crispier and create a wonderful contrast to the soft middle.
Please note that oven temperatures vary. My broiler heats at 550 degrees F.