Peach and Cream Cheese French Toast Casserole

10 to 12 slices white bread, crusts removed (good French bread or Hawaiian bread works great too!)
3 eggs
2 cups half & half
1/2 cup granulated sugar
1 teaspoon vanilla
Dash of ground nutmeg
8 ounces cream cheese, softened (regular or light)
1/4 cup granulated sugar
1 egg
1 teaspoon vanilla
2 to 3 fresh peaches or one 16-ounce can of drained peach halves
Arrange half of bread in bottom of greased 11 x 7-inch glass baking dish. In separate bowl, beat eggs, half & half, sugar, and vanilla. In another bowl, beat together all filling ingredients except for peaches and set aside. Pour 1/2 of egg and half & half mixture on bread in bottom of dish. Pour all of filling ingredients over bread, spreading evenly to sides of dish. Cut peach halves horizontally into 1/4-inch slices and place over filling. Arrange remaining bread slices over filling and peaches. Pour remaining egg and half & half mixture over bread. Sprinkle with nutmeg (cinnamon is also good!) Cover with aluminum foil and refrigerate overnight. 
Preheat oven to 350ยบ. Best to allow to stand at room temperature before baking for 30 minutes. Bake covered 30 minutes. Uncover and bake 30 to 40 minutes longer or until puffy and golden. Serve with warm maple syrup if desired.

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