Heat oven to 350°F. Grease 1-quart casserole. In greased casserole, combine bread cubes and milk; mix well.
In medium bowl, combine 1/4 cup brown sugar, cinnamon, nutmeg, 1/2 teaspoon vanilla and eggs; blend well. Stir in cranberries. Add egg mixture to bread cube mixture; mix well.
Bake at 350°F. for 45 to 50 minutes or until pudding is set.
In small saucepan, combine sugar, 1/3 cup brown sugar, whipping cream and butter; mix well. Cook over medium heat for about 5 minutes or until mixture comes to a boil, stirring occasionally. Stir in 1 teaspoon vanilla. Serve warm sauce over warm pudding.