Strawberry French Toast Casserole

• 3 tablespoons butter, softened
• 1 bread loaf, cut into slices
• Cooking spray
• 1 (12-ounce) jar Peach Jam
• 2 3/4 cups milk
• 1/3 cup sugar
• 1 teaspoon vanilla extract
• 1/4 teaspoon ground nutmeg
• 6 large eggs
• 1/3 cup finely chopped walnuts (optional)

1. Spread softened butter on one side of each bread slice. Arrange 1/2 the bread slices, buttered side down, slightly overlapping in a single layer in a 13 x 9-inch baking dish coated with cooking spray. Spread Strawberry Jam evenly over bread; top with remaining bread slices, buttered side up.
2. Combine milk and next 4 ingredients (through eggs), stirring with a whisk. Pour egg mixture over bread. Cover and refrigerate 8 hours or overnight.
3. Preheat oven to 350°.
4. Sprinkle casserole with walnuts if you are using them. Bake at 350° for 45 minutes or until golden. Let stand 5 minutes before serving.