Add the white chocolate and cherries. In a separate bowl, mix the sugar, cinnamon and nutmeg. (Set aside about ¼ cup). Add the eggs, cream, milk and vanilla to the mixture. Mix thoroughly.
Pour the mixture over the bread, making sure it is soaked. Put the creation in a greased baking pan. Evenly place the butter slices on top and sprinkle the remaining sugar mixture over the top of the bread pudding.
Bake at 350 degrees until golden brown (40-45 minutes).
Remove from the oven. Cut out a square and spread cherry sauce evenly on top.
FOR CHERRY SAUCE:
In a medium saucepan, combine all the ingredients and bring them to a boil.
Reduce the heat to simmer and cook until the cherries are soft.
Put the mix in your blender to puree then pour on bread pudding.