Mix first 7 ingredients in list together. Heat until you have a semi-thick sauce. Set aside and cool to room temperature.
Cut crusts from bread. Spray a 2 quart rectangular Pyrex pan with a non-stick pan coating. Cover the bottom of pan with bread slices.
In separate bowl, mix eggs, half & half, vanilla and sugar. Pour half of this mixture over bread. Spread thickened cool blueberry sauce over bottom layer. Arrange the other half of the bread on top of blueberry filling. Pour remaining egg mixture over the top. Sprinkle with a dash of nutmeg.
Cover and place in refrigerator ovrnight. Bake in a preheated 350o F. oven for 60 minutes. Let stand for 10 minutes before cutting into 6 servings or 12 servings for a buffet. Top with brown sugar and a few blueberries. A great substitute for French toast.