Approximately 24 hours prior to making this bread pudding, cube the bread into 1/2 inch pieces and spread them on a large baking sheet to allow them to dry out and stale.
For the Apple Pie Filling:
Begin by peeling, coring, and dicing the apples. In a medium saucepan over medium heat, melt butter. Stir in flour until combined, then add 3/4 cup of brown sugar, mixing well. Add the diced apples, apple pie spice, and water. Stir to combine, cover, and cook over medium heat until the apples are tender, stirring occasionally (approximately 10-15 minutes). Remove from heat and strain the mixture through a strainer, reserving the juices for later use. Allow the cooked apples to cool slightly.
For the Bread Pudding:
Preheat the oven to 375°F (190°C) and lightly grease a 9x13-inch casserole dish. Evenly spread the stale bread cubes in the dish, then distribute the cooked apples evenly over the bread. In a large mixing bowl, whisk together eggs, milk, melted butter, vanilla extract, 1/2 cup of brown sugar, apple pie spice, and cinnamon. Pour this egg mixture evenly over the bread and apples. Gently press down on the bread to ensure it absorbs the liquid.
Bake for 35-40 minutes, or until the bread pudding is set and firm in the center. To check for doneness, gently touch the center — it should feel dense and firm when the eggs are cooked through.
Remove the bread pudding from the oven and pour the reserved juices from the cooked apples over the top. Serve warm, ideally with a scoop of vanilla ice cream.