Arrange bread in a 9x13 oven-proof casserole dish.
In a large bowl whisk together eggs, milk, vanilla and 1 teaspoon of cinnamon and pour over bread, pressing bread down to soak up all the liquid.
Meanwhile, melt butter in a non-stick medium frying pan over medium-high heat. Add apples, and cook for 4 minutes, stirring occasionally. Add in walnuts (if using), brown sugar and remaining ½ teaspoon of cinnamon, cook for another 2 minutes.
Pour apples on top of bread, pressing down with a spoon to arrange evenly and press apple slices into the cracks.
Bake in the centre of the oven for 20-25 minutes.
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