Panettone Bread Pudding with Orange and Vanilla Sauce

This panettone bread pudding is my favorite way to turn the tall, fluffy Italian holiday loaf into something even more special. Cubes of panettone soak up a silky custard scented with orange zest and vanilla, then bake until the top is crisp and golden and the middle is soft, creamy and spoonable. Finish it with a warm vanilla butter sauce and you have a Christmas bread pudding that tastes like you fussed for hours.

In this post I walk you through why panettone makes such a good bread pudding, what you need, the step-by-step method, how to get it ready the night before, easy variations, common mistakes and how to store leftovers. You will find the printable recipe card with exact measurements and estimated nutrition at the bottom of the post.

Why Panettone Makes the Best Bread Pudding

Bread pudding was born as a thrifty way to use up stale bread, but it becomes a true celebration dessert when the bread itself is rich. Panettone is a sweet, yeasted Italian loaf made with butter, eggs, candied citrus and raisins, so half the flavor work is already done before you crack an egg.

• Built-in richness. The buttery, brioche-like crumb drinks up custard without falling apart, so every bite is tender but still has a little structure.
• Fruit in every bite. The candied orange peel and raisins baked into the loaf mean you do not need to add anything extra, although a handful of dried cranberries is lovely.
• Less sugar needed. Because panettone is already sweet, the custard only needs half a cup of sugar for the whole pan.
• Crisp top, creamy middle. The torn, uneven cubes poke up above the custard and caramelize in the oven, giving you crunchy edges and a soft center in the same scoop.
• Great for leftovers. If someone gifted you a panettone you did not finish, or you bought one on sale after the holidays, this is the perfect place for it.

The result is a warm, fragrant dessert that works for Christmas Eve, a holiday brunch or New Year’s Day. It also happens to be one of the easiest make-ahead desserts I know.

Ingredients You Will Need

You only need a handful of pantry staples to go with the panettone. Here is what each one does.

• Panettone: One pound (450 g), which is about 10 cups of cubes. A 1-kilogram loaf gives you enough for this recipe plus some for breakfast. Classic, chocolate chip and plain versions without fruit all work.
• Eggs: Five large eggs set the custard so it slices neatly when cool and stays creamy when warm.
• Whole milk and heavy cream: Two cups of milk and one cup of cream give a rich but not heavy custard. Half-and-half can replace both if that is what you have.
• Granulated sugar: Just half a cup, because the bread is already sweet.
• Orange zest: One tablespoon of fresh zest echoes the candied orange in the loaf and brightens everything.
• Vanilla and cinnamon: Pure vanilla extract and a little cinnamon make the whole kitchen smell like the holidays.
• Salt: A quarter teaspoon keeps the custard from tasting flat.
• Butter: For greasing the dish and for the simple vanilla butter sauce.

When you shop, look for a loaf that feels heavy for its size and smells buttery when you open the bag. Grocery store panettone in the holiday aisle works perfectly here, so there is no need to buy an expensive bakery loaf. If your panettone is very tall, cut it into thick slices first and then into cubes so the pieces stay even and soak at the same rate.

How to Make Panettone Bread Pudding

Grease a 9×13-inch (or 3-quart) baking dish generously with butter. The method is simple, but do not skip the soaking time, because that is what makes the center creamy instead of dry.

1. Cube the panettone. Peel off the paper liner and cut the loaf into 1-inch cubes, including the golden top. Dry them slightly if your loaf is very fresh.
2. Fill the dish. Scatter the cubes in the buttered baking dish in an even layer, letting some stick up above the rest.
3. Whisk the custard. In a large bowl, whisk the eggs and sugar until smooth, then whisk in the milk, cream, orange zest, vanilla, cinnamon and salt.
4. Pour and press. Pour the custard evenly over the panettone. Use a spatula to gently press the cubes down so they all get wet.
5. Soak. Let the dish sit for 30 minutes at room temperature, pressing the cubes down once more halfway through, or cover and refrigerate overnight. Meanwhile, heat the oven to 350°F (175°C).
6. Bake covered, then uncovered. Cover with foil and bake for 20 minutes. Remove the foil and bake for 25 to 30 minutes more, until puffed and golden and the center no longer looks wet.
7. Check doneness. A knife inserted in the center should come out without liquid custard, and an instant-read thermometer should read 160°F (71°C), the safe temperature for egg dishes.
8. Make the sauce. While the pudding rests, simmer the butter, sugar and cream in a small saucepan for 2 to 3 minutes until slightly thickened, then stir in the vanilla.
9. Rest and serve. Let the bread pudding cool for 10 to 15 minutes, then spoon it into bowls and drizzle with the warm sauce.

If the top is browning too quickly in the last 10 minutes, lay the foil loosely back over it. Every oven runs a little differently, so trust the thermometer and the knife test more than the timer.

How to Make It Ahead for Christmas Morning

This is a holiday host’s dream dessert because the whole thing can be assembled the night before. On Christmas Eve, cube the panettone, pour over the custard, cover the dish tightly and refrigerate for up to 24 hours.

The next day, take the dish out of the fridge while the oven heats, about 30 minutes. Cold custard takes longer to set, so plan on 5 to 10 extra minutes of uncovered baking. The vanilla sauce can be made up to 3 days ahead and gently rewarmed on the stove or in the microwave.

Served with coffee, it doubles as a festive brunch dish, much like my baked apple cinnamon French toast or a gooey cinnamon roll casserole.

Tips for the Best Christmas Bread Pudding

• Use the right ratio. About 3 cups of dairy and 5 eggs for 1 pound of bread keeps it custardy without turning soggy.
• Do not pack the cubes. Loose, uneven pieces give you more crispy peaks on top.
• Zest before you juice. If you want to use the orange juice in a glaze or sauce, zest the orange first while it is whole.
• Bake in the middle of the oven. Too close to the top element and the peaks burn before the center sets.
• Serve warm, not hot. A short rest lets the custard settle so each portion holds its shape.

Planning a whole holiday dessert table? Pair this with my chocolate yule log cake, a plate of cut-out Christmas sugar cookies and a tray of homemade peppermint bark. You can find even more festive ideas on my holiday recipes page.

Easy Variations

• Chocolate chip: Use chocolate chip panettone, or scatter 3/4 cup of chopped dark chocolate between the cubes.
• Cranberry orange: Tuck 1/2 cup of dried cranberries between the cubes and add a second teaspoon of orange zest.
• Spiked sauce: Stir 1 to 2 tablespoons of rum, brandy or amaretto into the finished vanilla sauce for adults.
• Nutty crunch: Sprinkle 1/2 cup of sliced almonds and 2 tablespoons of coarse sugar over the top before baking.
• Eggnog custard: Replace the milk with 2 cups of eggnog and reduce the sugar to 1/3 cup.
• No panettone? Use day-old brioche or challah and add 1/2 cup of raisins and 2 tablespoons of chopped candied orange peel.

Keep the total amount of bread and liquid the same and every version will bake up beautifully.

Common Mistakes and How to Fix Them

Bread pudding is forgiving, but a few small details make the difference between soggy and spectacular.

Storage and Reheating

Because it is made with eggs and dairy, bread pudding should not sit out for more than 2 hours. Cover leftovers or transfer them to an airtight container and refrigerate for up to 4 days. The USDA explains these limits in its guide to leftovers and food safety.

Reheat single portions in the microwave for 30 to 45 seconds, or warm a larger amount covered with foil at 325°F (165°C) for 15 to 20 minutes until hot in the center. Cold leftovers are surprisingly good too, almost like a slice of creamy custard cake.

To freeze, cool the baked pudding completely, cut it into portions, wrap them well and freeze for up to 2 months. Thaw overnight in the refrigerator and reheat as above. Freeze the sauce separately in a small jar.

Frequently Asked Questions

Ready to bake? Here is the full printable panettone bread pudding recipe with exact measurements and estimated nutrition.

Panettone Bread Pudding

Cubes of panettone soaked in an orange-vanilla custard, baked until golden and served with a warm vanilla butter sauce.

Print Recipe Pin Recipe

Prep Time 20 minutes mins

Cook Time 50 minutes mins

soaking 30 minutes mins

Total Time 1 hour hr 40 minutes mins

Servings: 10 servings

Course: Dessert

Cuisine: American, Italian

Calories: 520

Ingredients Method Notes

Ingredients

  

Bread pudding

• 1 pound panettone cut into 1-inch cubes, about 10 cups (450 g)
• 1 tablespoon unsalted butter softened, for the dish
• 5 large eggs
• 1/2 cup granulated sugar (100 g)
• 2 cups whole milk (480 ml)
• 1 cup heavy cream (240 ml)
• 1 tablespoon orange zest from 1 large orange
• 2 teaspoons pure vanilla extract
• 1/2 teaspoon ground cinnamon
• 1/4 teaspoon salt

Vanilla butter sauce

• 1/2 cup unsalted butter (113 g)
• 1/2 cup granulated sugar (100 g)
• 1/2 cup heavy cream (120 ml)
• 1 teaspoon pure vanilla extract

Method

 

Bread pudding

1. Butter a 9×13-inch or 3-quart baking dish. Spread the panettone cubes in the dish in an even layer.
2. Whisk the eggs and sugar until smooth, then whisk in the milk, cream, orange zest, vanilla, cinnamon and salt.
3. Pour the custard over the panettone and press the cubes down gently so they are all moistened. Soak for 30 minutes, pressing once more halfway through, or cover and refrigerate up to 24 hours.
4. Heat the oven to 350°F (175°C). Cover the dish with foil and bake for 20 minutes.
5. Uncover and bake for 25 to 30 minutes more, until puffed, golden and set, with the center at 160°F (71°C). Rest for 10 to 15 minutes.

Vanilla butter sauce

1. In a small saucepan, melt the butter with the sugar and cream. Simmer for 2 to 3 minutes, stirring, until slightly thickened. Remove from the heat and stir in the vanilla.
2. Serve the bread pudding warm, drizzled with the sauce.

Notes

Make ahead: Assemble and refrigerate up to 24 hours; add 5 to 10 minutes to the uncovered baking time.

Substitute: Brioche or challah plus 1/2 cup raisins and 2 tablespoons candied orange peel can replace the panettone.

Storage: Refrigerate up to 4 days or freeze portions up to 2 months.

Nutrition is an estimate per serving, including the sauce.

I hope this cozy dessert becomes part of your Christmas traditions. If you make it, please leave a comment and a star rating below and tell me which panettone you used. Merry baking, friends!