Butter a 10x20cm loaf dish and set aside.

Butter bread slices and remove crusts.

Cut bread slices to required shape to fit the pan.

Whisk eggs and caster sugar until pale.

Gradually blend in milk and vanilla essence.

Place a layer of buttered bread over the base of the prepared dish.

Sprinkle with a little chocolate chips.

Pour over enough custard mix to just cover the bread layer.

Continue layering bread, chocolate chips, and custard until the pan is full, finishing with a layer of bread.

Drizzle with any remaining custard.

Dust with cinnamon sugar and ground nutmeg.

Place the pan into a baking dish filled with enough water to come halfway up the sides of the pan (water bath).

Bake at 180°C for 1 hour or until firm.

Prepare butterscotch sauce.

Melt butter and brown sugar together in a saucepan.

Stir in thickened cream.

Bring to the boil, stirring.

Reduce heat and simmer for 3 minutes or until slightly thickened.

Serve pudding with warm sauce and cream if desired.