Step 1: Prepare the Cream Cheese Mixture

In a medium-sized mixing bowl, combine the softened cream cheese, powdered sugar, milk, and ½ teaspoon of vanilla extract. Using an electric mixer (handheld or stand mixer), beat the mixture on medium speed until it is smooth and creamy. Be sure to scrape down the sides of the bowl as needed to ensure that everything is evenly incorporated. Once the mixture is smooth, gently fold in 1 cup of blueberries. Be careful not to overmix, as you don't want to crush the blueberries. Set the cream cheese mixture aside. The consistency should be thick yet spreadable. If the cream cheese is not fully softened, it may result in a lumpy mixture. Ensure it is truly softened for a smoother result. The powdered sugar helps create a smooth, velvety texture, but granulated sugar can be used in a pinch; be prepared for a slightly grainier texture.

Step 2: Assemble the Bread Layers

Lightly grease a 10x14 inch baking dish with butter or cooking spray. This will prevent the bread pudding from sticking to the bottom of the dish. Now, evenly spread half of the cubed French bread across the bottom of the prepared baking dish, creating a base layer. You want a nice even layer without any large gaps. Next, evenly spread the cream cheese mixture over the bread cube layer. Use a spatula or spoon to gently spread the mixture, making sure to distribute it as evenly as possible across the bread. Top with the remaining bread cubes, creating a second layer. Gently press down on the top layer of bread to help it settle into the cream cheese mixture.

Step 3: Prepare and Add the Egg Mixture

In a large mixing bowl, whisk together the milk, eggs, ½ teaspoon of vanilla extract, cinnamon, and nutmeg until well combined. The eggs should be fully incorporated, and the mixture should be smooth and homogenous. Pour this egg mixture evenly over the layered bread in the baking dish. Make sure all the bread is thoroughly soaked. You may need to gently press down on the bread to ensure that it absorbs the liquid. This step is crucial for achieving a moist and custardy bread pudding. Sprinkle the remaining 1 cup of blueberries evenly over the top of the soaked bread. Cover the baking dish tightly with aluminum foil. This will help to prevent the top from browning too quickly and ensure that the bread pudding cooks evenly. Refrigerate the covered dish for at least 8 hours, or preferably overnight. This allows the bread to fully absorb the egg mixture and the flavors to meld together.

Step 4: Preheat the Oven

Remove the dish from the refrigerator 30 to 60 minutes before baking to allow it to come to room temperature slightly. This will help the bread pudding cook more evenly. Preheat your oven to 375°F (190°C). Make sure your oven is properly preheated before baking the bread pudding.

Step 5: Bake the Dish

Place the covered baking dish in the preheated oven and bake for 45 minutes. After 45 minutes, carefully remove the foil and continue baking for another 30 minutes, or until the center of the bread pudding is set and the top is lightly browned. A toothpick inserted into the center should come out mostly clean. The total baking time will be approximately 75 minutes. Keep a close eye on the bread pudding during the last 15 minutes of baking to prevent it from burning. If the top starts to brown too quickly, you can loosely cover it with foil.

Step 6: Serve and Enjoy

Once baked, remove the dish from the oven and let it cool slightly for about 10-15 minutes before serving. This will allow the bread pudding to set up a bit and make it easier to slice. Serve warm, either on its own or with a dollop of whipped cream, a scoop of vanilla ice cream, or a drizzle of maple syrup.