You can let a regular yeast bread lounge in the fridge overnight for a slow rise where great flavor evolves, just as you can bread pudding, but it is not essential! As long as you give enough time for the bread to soak in the liquid, it should work!
I agree, an overnight soak works the best for a creamier more flavorful bread pudding. I normally make savory ones though. But my aunt tells me stories about growing up in SC with not a lot of resources and bread pudding was the dessert as the result of leftover biscuits from the AM. Her mom would place the old and stale biscuits in a biscuit box and save them until she had enough to make bread pudding, a dessert, that normally would be a luxury or non-existent. Using what you have as so many cultures do. My aunt still makes her own but is humored by its fashionableness.
No, it isn't. I stir the bread (or cubed croissants) to the custard mixture, then allow it to sit for 20-30 minutes at room temp. You're in no danger of contamination in that amount of time. Refrigerating it only slows down the absorption rate, and will require a somewhat longer baking time. After the rest period, I dish it into ramekins and bake it in a water bath. Works like a charm every time.
I've made an entire pan of bread pudding before, letting all the milk/cream soak into the bread. However, it's not necessary to refrigerate it if you only let it soak for about 30 minutes, which is all the time it takes for the bread to properly hydrate itself.
It really helps get the bread properly hydrated, I think. You don't want to leave it out for bacterial development though! So I refrigerate mine for quite a while prior to baking. Does depend to some extent on the read and its absorption rate. I like Challa.....
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