1. Sauté apples and cinnamon in a lightly greased skillet over medium-high heat for 2 minutes or until tender. Stir together the bread and apple mixture in a baking dish coated with cooking spray.
2. Whisk together eggs, milk, brown sugar, vanilla, and nutmeg. Then pour over bread mixture in baking dish. Cover and chill for 1 hour.
3. Preheat oven to 350°. Bake bread mixture at 350° for 45 to 50 minutes or until the top is crisp and golden brown. Serve warm with walnuts and caramel sauce. Enjoy!