1. Heat oven to 350 degrees F.
2. Toss bread with 2 cups of the milk in 13 x 9 x 2-inch baking dish. Let stand 10 minutes.
3. Meanwhile, in separate bowl, mix together the remaining milk and pudding until smooth. Pour over soaked bread; toss lightly.
4. Bake in 350 degrees F oven for 1 hour or until browned and almost set in middle. Cool on wire rack for at least 15 minutes before serving. Serve warm or chilled.