Heat oven to 350. Grease shallow 2-quart baking dish with butter. Add bread and walnuts to dish. Combine 2 cups milk, butter, sugar, salt in saucepan. Bring to simmer, stir to melt butter. Remove from heat. Add chocolate; let stand 5 minutes. Whisk until smooth. Whisk eggs, vanilla and remaining milk in bowl. Whisk into chocolate mixture; pour over bread, Bake for 35 to 40 minutes or until set in center. WHITE CHOCOLATE SAUCE: Bring cream, sugar and salt in saucepan to simmer. Stir in cornstarch, simmer, stirring until thickened, about 1 minute. Remove from heat. Stir in white chocolate and vanilla until smooth. Serve with warm or room temperature pudding. Typed by Ethel Snyder Date: July 24, 1997 Recipe by: Family Circle magazine -- 2/18/97 Posted to MC-Recipe Digest V1 #689 by essie49@juno.com (Ethel R Snyder) on Jul 25, 1997