Step 1: Grease deep 1.5 litre (6 cup ovenproof dish).
Step 2: Peel, core and quarter apples, cut each quarter into 3mm slices.
Step 3: Dissolve brown sugar in the water in medium frying pan over low heat, add apples; simmer, uncovered, about 5 minutes or until tender, stirring occasionally.
Step 4: Combine milk and vanilla bean in medium saucepan; bring to a boil.
Step 5: Remove from heat; stand, covered, 5 minutes.
Step 6: Discard vanilla bean.
Step 7: Meanwhile (while milk stands) cut bread slices into quarters.
Step 8: Arrange bread and apple in alternate layers (finishing with bread) in dish.
Step 9: Whisk eggs, cinnamon and nutmeg in medium bowl.
Step 10: Gradually whisk hot milk mixture into egg mixture.
Step 11: Pour egg mixture carefully over bread and apple.
Step 12: Place dish in a large baking dish, add enough boiling water to baking dish to come halfway up side of pudding dish.
Step 13: Bake uncovered about 1 hour or until set.
Step 14: Serve with low fat ice cream or cream, if desired.
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