Start heating oven to 350 degrees F.
Grease a 1 ½ qt casserole dish.
In a double boiler, heat milk until tiny bubbles appear around the edges of the pan.
Remove from heat and stir in bread crumbs and set aside.
Break eggs into the casserole dish beating slightly with a fork.
Stir in sugar, salt, then milk mixture, nutmeg, vanilla, and butter.
Set the casserole dish in baking pan; fill baking with warm water. The water should come up 1" from top of the casserole dish.
Place cooked apples on top of the custard bread pudding. Drizzle the sauce over the apples.
Bake uncovered, 1 hour 15 minutes or until knife when inserted comes clean.
Serve warm or cold. Place a dollop of whip cream or ice cream on top.