Heat oven to 350°F. Spray bottom and sides of 8-inch square (2-quart) glass baking dish with cooking spray. In large bowl, place bread, 1 cup raspberries and chocolate chips.
In medium bowl, mix milk, egg product, brown sugar and vanilla with wire whisk or fork until blended. Pour egg mixture over bread mixture; stir gently until bread is coated. Spread in baking dish.
Bake 40 to 50 minutes or until golden brown and set.
Meanwhile, in 2-quart saucepan, mix granulated sugar and cornstarch. Stir in water and thawed raspberries. Heat to boiling over medium heat, stirring constantly and pressing raspberries to release juice. Boil about 1 minute or until thick. Place small strainer over small bowl. Pour mixture through strainer to remove seeds; discard seeds. Serve sauce with warm bread pudding.