Spray a 12 cup muffin tin with nonstick cooking spray and set aside.
Heat the canola oil in a large skillet over medium heat and saute the mushrooms. Add the sausage and stir over the heat until browned and cooked through.
In a large bowl whisk together the eggs, milk, Italian seasoning and salt and pepper. Add the cubed bread to the egg mixture and let the egg and bread mixture sit for at least 30 minutes in the refrigerator to allow the bread to absorb the liquid.
Preheat the oven to 325 degrees F.
Remove the egg mixture from the refrigerator, add the sausage and mushrooms and stir to combine. Ladle the bread pudding mixture into the muffin tins and bake until set, about 30 to 35 minutes. Remove the puddings from the muffin tins to a serving platter and serve. Reserve 3 puddings for the Round 2 Recipe, Savory Bread Pudding Bites with Apple Mustard Sauce.
Use the leftovers from this recipe to make Savory Bread Pudding Bites with Apple Mustard Sauce .