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Preheat oven to 175°C (350°F) and grease a medium baking dish.
Place the cubed bread and raisins in the prepared dish.
In a bowl, whisk together milk, butter, sugar, eggs, cinnamon, vanilla, and salt.
Pour the mixture evenly over the bread. Let it sit for 10 minutes to soak.
Bake for 40–45 minutes, or until golden and set in the center.
For the sauce: In a saucepan, whisk milk, sugar, and cornstarch over medium heat until thickened.
Remove from heat, stir in butter and vanilla.
Serve warm bread pudding drizzled with vanilla sauce.
Serving and storage tips:
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