Combine bread cubes and milk. Let stand 15 minutes.
Beat together eggs, sugar, and extract. Poor egg mixture over bread mixture, stirring gently until blended. Stir in raisins.
Pour into 1 1/2 quart casserole. Set casserole in 13x9x2 inch baking pan, place on rack in oven and fill pan with 1-inch very hot water. Bake in preheated 300 degree oven until knife inserted 1-inch from edge comes out clean, about 1 1/2 to 2 hours.
Remove from hot water and let cool an hour. Bread pudding is very good served with a scoop of ice cream or with a little syrup.