Soak Raisins in Bourbon for a few hours. You can even soak them overnight if you like.
Heat oven to 350 degrees F.
Chop dried bread into 1 inch squares.
Place 3 cups milk in a bowl and add the bread cubes. Press on the bread to soak up most of the milk. Add more milk if needed. All pieces should be soaked.
In another bowl, combine the 3 eggs, 2 cups sugar, 2 Tbsp Vanilla, 1/4 tsp All-Spice and 1/2 tsp Cinnamon. Whisk together all ingredients and then pour over the bread and milk mixture. Add the Bourbon soaked raisins and gently stir with wooden spoon.
Melt 3 Tbsp butter and coat a 9 x 13 inch dish (pyrex works great). Coat the bottom and sides with butter. Then pour bread mixture into pan and spread evenly.
Bake at 350 degrees for 40 to 60 minutes. The liquid should set and the tops and edges should brown. The bread should pull away from the edges when it's done. To brown the top even more, put under a broiler for a minute or two. Watch carefully.
While baking the bread, make the Bourbon sauce. Melt 1/2 cup butter in a sauce pan. Whisk in 1 cup sugar and 1 egg. Cook over low heat until mixture thickens. Do not boil. If sauce curdles, it can be blended in a blender. Finally, whisk in desired amount of Bourbon 1/4 cup to 1/2 cup depending on your taste. Serve on the side to pour on top by your guests.