Preheat oven to 350 degrees F. Grease large, clear Pyrex dish (some folks prefer to use a 9X12" baking dish. If you do that, reduce baking time).
Combine sugar, cinnamon, and nutmeg in a large bowl. Beat in the egg until smooth, then work in the milk. Add the vanilla, then the bread. Allow bread to soak up liquid.
Fold in apples and raisins, then put all in the greased pan. Cut butter into pats, then distribute evenly over top of mixture.
Bake for 45 minutes to one hour, or until the pudding has a golden brown color and is firm to the touch. If a toothpick inserted in the pudding comes out clean, it is done. The mixture of pudding should be nice and moist, not runny or dry.
To make the whiskey sauce, cream butter and sugar. Put in double boiler over medium heat. Whisk corn starch and water together, and add to mixture while whisking. Bring to a boil. Whisk and let simmer for a few seconds (WATCHPOINT: don¿t let it burn the mixture on the bottom). Blend in egg.
Remove from stovetop. Add Bourbon. Taste to make sure the sauce has a thick consistency, a sufficiently sweet taste, and a good whiskey flavor.
Note: New Orleans French bread is very light. If another type bread is used that is too dense, texture will not be correct.