Heat oven to 350°F. Lightly grease a 12 x 8 x 2-inch glass baking dish.
Line baking dish with bread slices, arranging them in several layers and sprinkling raisins between the layers, dividing equally.
Beat eggs in large bowl until light and foamy. Whisk in the milk, sugar, nutmeg and vanilla until well blended.
Pour egg and milk mixture over bread. Press bread down gently with a spatula. Let stand for about 30 minutes so the bread softens and absorbs some of the liquid. Sprinkle nuts over top.
Bake in 350°F oven for 35 to 40 minutes or until the custard is set. Let the pudding stand for 15 minutes before serving.