Preheat oven to 325°F Mix milk, sugar, white chocolate and butter in large microwavable bowl. Microwave on HIGH 4 minutes or until butter is melted, stirring after 2 minutes. Stir until white chocolate is completely melted. Set aside.
Beat eggs, pumpkin, pumpkin pie spice and vanilla in large bowl until well blended. Add white chocolate mixture; stir until well blended. Add bread cubes, cherries and 1/2 cup of the pecans; stir until well coated. Spread evenly in greased 13x9-inch baking dish. Sprinkle with remaining pecans.
Bake 40 to 45 minutes or until knife inserted in center comes out clean. Serve warm with warm Vanilla Butter Sauce.
Vanilla Butter Sauce: Mix all sauce ingredients EXCEPT vanilla extract in medium saucepan. Bring to boil on medium heat. Reduce heat to low; simmer 5 to 10 minutes or until slightly thickened. Remove from heat. Stir in vanilla extract.