Butter a 9x13 baking dish. In a large bowl, pour milk over bread cubes. Let stand 20 mins till milk is absorbed. Whisk sugar and eggs, stir in raisins and vanilla. Add bread to mixture. Pour into buttered dish. Bake 1 hour at 350 degrees.
Melt butter. Mix sugar and egg. Gradually pour in butter. Stir over low heat till mixture thickens. Do not boil. Add bourbon. Sprinkle powdered sugar over pudding. cut into squares. Ladle warm sauce onto plates, place pudding on top of sauce.