Beat cream cheese in medium bowl at medium speed until smooth. Beat in cranberry sauce and sugar.
Slice bread into 8 (1 1/2 inch-thick) slices.
Cut a pocket in each bread slice by cutting through top crust and almost to bottom, leaving sides of bread slices intact.
Fill each pocket with about 2 tablespoons cream cheese mixture.Beat eggs with wire wisk in large shalow dish. Add milk, vanilla, cinnamon and nutmeg and wisk until blended. Dip 1 piece of bread at a time into egg mixture; turn over and allow to soak up egg mixture. Place filled slices ionto lightly greased baking sheet. Put 1 teaspoonof butter on each side of the bread. Bake 5 minutes or until golden brown on bottom. Toast should feel just slightly crisp on surface. Serve with warm Cranberry Sauce.