Savory Onion and Cheddar Bread Pudding

In large skillet, melt butter with oil over medium heat. Add onion, sugar and 1/8 teaspoon salt. Cover and cook, stirring occasionally, 5 minutes. Remove cover and continue cooking, stirring often, until golden brown, about 15 minutes. Remove from heat.

Oil or butter 6 large custard cups or small crocks of about 1-cup capacity.

In large bowl, whisk together eggs, milk, mustard, thyme, remaining salt and pepper to taste. Trim crusts from bread and cut into 1/2-inch cubes. Fill each cup one-third of the way with bread. Sprinkle with some cheese, then add a little onion. Repeat layering—bread, cheese, onion—until cups are nearly filled. Ladle egg mixture over bread, dividing equally. Press down on bread, if necessary, to submerge. Top with a spoonful of milk, if necessary, to cover completely. Let stand at room temperature 30 minutes.

Preheat oven to 350ºF and bring small pot of water to a boil.

In shallow baking pan large enough to hold cups in single layer, pour enough boiling water to fill by about one-third. Arrange cups in pan, leaving a little space between them. Cover loosely with tented foil and bake 30 minutes. Remove foil and bake until puddings have risen and a knife inserted into center shows no trace of uncooked egg. Remove cups from water and transfer to wire rack to cool slightly. Serve warm.