In a large bowl toss cubed raisin bread with apples, cheddar cheese, raisins, cinnamon, and nutmeg.
In a separate bowl, mix milk, egg whites, whole egg, honey, vanilla extract and salt.
Pour wet over dry and mix. Pour the entire bowl into a 2 quart casserole dish and lay the whole slices over top, pressing down with a wooden spoon so everything is soaked. The whole slices can be cut to fit the shape of the casserole dish.
Cover with plastic wrap and place in the refrigerator for 8-24 hours.
When ready to bake, preheat the oven to 350 degrees.
Cover the top with parchment paper cut out to fit casserole dish then cover with foil.
Bake covered for 40 minutes. Uncover and bake for another 20 minutes until puffed and browned.
Turn off oven and let dish sit in oven for 10 more minutes.
Remove from the oven, dust with powdered sugar, and serve warm with syrup, fruit or sweet sauces on the side.