Heat oven to 325 degrees. Butter a deep 1 1/2 quart baking dish. Put sausage and 2 tablespoons water in a frying pan; cover and cook over low heat until browned on all sides, about 5 minutes. Drain on paper towels and cut into 1/2 slices. Grate cheese. Cut bread into approximately 1 inch chunks. Put half of them in baking dish. Cover with sausages, half the cheese and remaining bread. Melt butter and brush the top layer of bread cubes with it. Sprinkle remaining cheese over top. Combine milk, eggs, 1 teaspoon salt and 1/4 teaspoon pepper and pour over ingredients in dish. Set baking dish in pan and add warm water to come halfway up the side of dish. Bake until set, about 50 minutes.
Makes 4 servings.
