Preheat oven to 325 degrees F. Butter a 2-quart baking dish.
Place 5 cups of day old bread in a shallow bowl. Pour 1/2 cup of espresso into 3 cups of half-and-half. Pour mixture over bread and allow to soak for 1 hour.
Beat 5 eggs. Add 1/2 cup sugar and mix well. Add 1/4 teaspoon nutmeg and 1-1/2 teaspoons vanilla extract; mix well. Pour mixture over bread. Add 2/3 cup raisins and 1/3 cup pecans. Dot with 2 tablespoons butter. Bake 45 to 60 minutes.
Serve with Caramel sauce or Whipped Cream
Combine 3-3/4 ounces sugar with 2 ounces water. Bring to boil. Stir until sugar is dissolved. Boil syrup while swirling pan until deep golden caramel. Remove from heat. Add 6 ounces of heavy cream (will bubble) slowly. Cook sauce over low heat stirring until smooth. Add 2 tablespoons of unsalted butter and stir until melted.