Preheat oven to 325°F. Cut donuts into eighths and arrange on a large rimmed baking sheet in a single layer. Bake for 20 minutes, flipping once, until they are crispy. Set aside to cool for 10-15 minutes.
Using a brush, paint a 2-quart baking dish with melted butter to prevent sticking. Set aside.
In the bowl of a stand mixer fitted with the whisk attachment or a large mixing bowl with an electric whisk, blend together eggs, yolks, half & half, milk, brown sugar, extract and salt until bubbly and frothy.
Add cooled donut pieces to the custard mixture, tossing. Allow to sit for 10 minutes. Repeat tossing and sitting 2 more times to try and get the donuts to absorb as much custard as possible.
Transfer the donut pieces and custard to prepared baking dish.
Dollop peach preserves all over the top.
In a small mixing bowl, combine the sugar, cinnamon and nutmeg and sprinkle on top of the custard and donuts.
Bake, uncovered, for 55-60 minutes or until the center custard has set, edges are browned and donuts are puffy. Internal temperature of bread pudding should be 160°F.
Remove and allow to cool for 5-10 minutes.
Dust the top with powdered sugar and then scoop onto serving plates. Drizzle with the Bourbon Caramel Sauce.
If you've tried this recipe, come back and let us know how it was in the comments or ratings.
Nutritional Information is without the caramel sauce!