1. Combine milk, 1 tablespoon sugar, cinnamon, vanilla, nutmeg, salt, and eggs in a large bowl; stir with a whisk. Place bread slices in a 13 x 9–inch baking dish; pour egg mixture over bread; turn to coat. Let stand at room temperature 20 minutes, turning occasionally, until egg is absorbed.
2. Combine strawberries, remaining 1 tablespoon sugar, and rind in a small bowl. Let stand 20 minutes.
3. Melt 2 teaspoons butter in a large nonstick skillet over medium heat. Add 4 bread slices to pan; cook 3 1/2 minutes on each side or until golden. Repeat procedure with remaining butter and bread.
4. Place 2 bread slices on each of 4 plates. Sprinkle each serving with 1 1/2 teaspoons powdered sugar; top each with 1/2 cup strawberry mixture.