Preheat oven to 350 degrees F. Place bread in a bowl with milk and set aside until well saturated.
In a separate bowl, with an electric mixer on high, beat eggs with sugar until thick and pale. Slowly stir in vanilla, cinnamon, nutmeg, butter and cherries to the egg mixture. Fold the soaked bread into the egg mixture and let stand approx. 10 minutes. Allow enough time for the bread to absorb the egg mixture or it will rise to the top during baking, leaving custard on the bottom of the dish.
Spoon the mixture to a greased baking dish. Bake until firm, or until a knife inserted in the middle comes out clean, about 45 to 50 minutes. Remove from oven and allow to cool slightly before serving portions.
For the Booze Sauce:
With an electric mixer, beat egg yolks until thick and slightly frothy and set aside. In saucepan, warm cherry liquid and slowly add butter and sugar until melted thoroughly. Pour a small amount into bowl with egg yolks, beating constantly with the mixer, until well thickened.
Add remaining liquid to bowl and set aside to be served over warm pudding. Add a scoop of vanilla ice cream to top of pudding if desired and drizzle with warm booze sauce.