Preheat oven to 350°.
Combine water and raisins; let stand 10 minutes or until raisins plump. Drain raisins over a bowl, reserving soaking liquid. Combine soaking liquid, brown sugar, and cinnamon in a large saucepan; bring to a boil. Reduce heat; simmer 15 minutes. Stir in butter.
Arrange half of bread in bottom of a 13 x 9-inch baking dish coated with cooking spray. Top with half of cheese and half of raisins. Repeat layers, ending with raisins. Pour the sugar liquid over bread. Cover with foil coated with cooking spray. Bake at 350° for 1 hour or until set.
Place cream in a medium bowl, and beat with a mixer at high speed until stiff peaks form. Sprinkle the bread pudding with powdered sugar, if desired, and serve with whipped cream.