In a small bowl, soak the raisins in the bourbon.
Place the bread cubes in a large bowl and drizzle the butter over them. Mix the 1/2 cup sugar and 1 teaspoon cinnamon together and sprinkle over the bread, tossing to distribute evenly.
Heat the cream, 1 cup sugar, vanilla, nutmeg, and remaining teaspoon of cinnamon over low heat, stirring until the sugar is dissolved, about 2 minutes. Do not boil.
Place the eggs in a bowl and slowly whisk in the warm cream. Pour the cream over the bread, mix in the raisins, and allow to stand for 45 minutes to 1 hour, until bread cubes are no longer dry in the center. Mix once or twice during standing.
Preheat the oven to 350 degrees. Butter a 9x13 inch glass baking dish and pour in the bread mixture. Place the dish in a larger baking pan and transfer to the oven. Carefully pour hot water into the baking pan until it comes halfway up the sides of the dish. Bake 55 to 60 minutes, or until center is set and the inserted tip of a knife comes out clean. Remove from oven and cool until the dish can be safely removed from the pan holding the hot water.
Serve warm with Vanilla Bean Caramel Sauce.
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