Spray 6-7 inch (1 1/2-quart) soufflé dish or round baking dish that fits inside Instant Pot® with nonstick cooking spray. Whisk milk, eggs, pumpkin, brown sugar, butter, cinnamon, vanilla, salt and nutmeg in large bowl until well blended. Add bread cubes; toss to coat. Pour into prepared dish; cover tightly with foil.
Pour 1 1/4 cups of water into pot. Place soufflé dish on rack; lower rack into pot.
Secure lid and move pressure release valve to Sealing position. Press Manual or Pressure Cook; cook at high pressure 40 minutes.
When cooking is complete, use natural release for 10 minutes, then release remaining pressure.
Remove soufflé dish from pot. Remove foil; cool 15 minutes. Meanwhile, prepare Bourbon Caramel Sauce, if desired. Serve bread pudding warm with sauce.
Notes
BOURBON CARAMEL SAUCE:
Combine 1/4 cup (1/2 stick) butter, 1/4 cup packed brown sugar and 1/4 cup whipping cream in small saucepan; bring to
a boil over high heat, stirring frequently. Remove from heat; stir in 1 tablespoon bourbon.