In a large saucepan, combine the milk, cream and sugar. Cook over medium heat until mixture comes to a boil. Remove from the heat; stir in chips until melted. In a large bowl, whisk eggs and vanilla. Gradually whisk in cream mixture. Add bread. Let stand for 15 minutes, stirring occasionally.
Stir in apples. Pour into a greased 13-in. x 9-in. baking dish. Cover and bake at 350° for 45 minutes. Uncover; bake 30 minutes longer or until a knife comes out clean.
Meanwhile, for sauce, In a large saucepan combine the sugar, water, corn syrup and lemon juice. Cook and stir over medium heat until sugar is dissolved. Bring to a boil over medium-high heat; boil, without stirring, until a candy thermometer reads 295° and mixture turns deep amber.
Remove from the heat; stir in cream. Cook and stir over low heat until mixture is smooth. Bring to a boil over medium heat; cook and stir for 4 minutes. Stir in nuts and vanilla. Stir before serving. Serve warm with warm bread pudding.
Reviews
Caramel sauce is awesome, bread pudding was somewhat bland. I would suggest adding some nutmeg and replacing the apple with cranberries.