Preheat the oven to 350 degrees F.
Soak the bread in the milk for 10 minutes. Add the eggs, sugar, vanilla, and bourbon and stir well. Pour the melted butter in the bottom of a 13 by 9-inch baking pan. Pour the mixture in the pan and bake for about 40 minutes.
For the sauce, cream the butter with sugar and cook the mixture in a double boiler until it is dissolved. Add the beaten egg and whip rapidly. Let the sauce cool and add the bourbon. Before serving, add the pecans. Serve the sauce warm over the bread pudding.
Recipe courtesy of Talbott Tavern, Kentucky
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