Butter 8-inch square baking dish. Whisk first 6 ingredients in medium bowl. Place bread and pecans in prepared dish. Pour milk mixture over and let stand 5 minutes. Push down bread into custard. Refrigerate 2 hours, pushing bread into custard occasionally. Preheat oven to 375°F. Place bread pudding in large metal baking pan. Add enough boiling water to baking pan to come 1 inch up sides of dish with bread pudding. Bake until pudding is puffed and golden brown on top, approximately 50 minutes. Remove dish with bread pudding from water and cool slightly. Cut into squares. Serve bread pudding warm with sauce.