1. Place the sugar in a thick bottomed pan. Add � cup of water.
2. Place on moderate heat and stir, till the sugar is dissolved.
3. Increase the heat and cook steadily (do not stir) till the syrup is golden brown.
4. Remove from fire. Pour warm milk and stir till the caramel is uniformly mixed with the milk. Let the milk cool.
5. Remove crust from bread and cut into triangles. Melt butter.
6. Dip bread slices in butter and arrange in a greased baking dish. Sprinkle nuts on top.
7. Beat the eggs with vanilla and mix with caramel milk.
8. Pour on top of bread. Allow to soak for 1 hr.
9. Bake in a moderate oven (180 0 C) till set, about 45 minutes. Serve warm or cold.

Serves: 4 to 6