1 (16-ounce) loaf Italian bread, cut into 1 inch slices
2/3 cup butter or margarine, melted
½ cup macadamia nuts, chopped and toasted
Garnishes: powdered sugar, ground nutmeg
Combine first 6 ingredients in a bowl, stirring well.
Arrange bread slices in a single layer in a lightly greased 13-x 9- 2-inch baking dish. Pour egg mixture over bread slices; cover and chill at least 8 hours, turning bread once.
Pour butter into a 15-x 10- x1-inch jellyroll pan; place bread slices in a single layer in pan.
Bake at 400 degrees for 10 minutes; sprinkle with nuts. Bake 10 additional minutes. Garnish, if desired. Serve immediately. Yield 6 servings.