Apple Cheddar Bread Pudding


    14 slices firm white sandwich bread (about 1 pound)
    1 stick (1/2 cup) unsalted butter, softened
    3/4 cup granulated sugar
    1 1/2 teaspoons cinnamon
    1/2 teaspoon freshly grated nutmeg
    3 pounds Granny Smith apples (about 6)
    1 1/2 tablespoons fresh lemon juice
    1/2 cup packed light brown sugar
    1/4 cup water
    1 cup coarsely grated extra-sharp Cheddar (about 4 ounces)
    4 large eggs
    2 3/4 cups milk
    1/4 teaspoon salt


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