• Preheat the oven to 350 f.
• Generously grease a 2 quart casserole dish. Set aside.
• To make the pudding, heat the milk over low heat in a sauce pan until it is hot, but not boiling.
• Remove from the heat and add the bread pieces. Let them stand in the milk until all of the milk is absorbed.
• The bread should be soft, but not mushy.
• Add the rum to the raisins and set to the side.
• In a large bowl, cream together the butter and sugar.
• Beat in egg yolks, vanilla extract and rum extract, salt, cinnamon, and nutmeg. Mix well.
• Add this mixture to the bread mixture. Stir well.
• Gently stir in the raisins.
• Pour the mixture into the prepared casserole dish.
• Bake for 1 hour or until a toothpick inserted in the middle comes out clean. Remove from the oven.

Sauce

• In a sauce pan, bring the butter and water to a boil over medium heat. Add the flour and sugar whisking constantly.
• Whisk in the rum and vanilla extract.
• Cook, stirring constantly, until the mixture bubbles.
• Remove the sauce pan from the heat and serve hot over the warm or room temperature pudding.