Cut a horizontal slit through bottom crust of each slice of bread to form a pocket. Combine powdered sugar and cream cheese; stir well. Spread mixture evenly into pockets of bread. Place 6 bread slices in each of two large, shallow baking dishes; set aside.
Combine milk, sugar, vanilla extract, egg whites, and eggs in a bowl; beat well with a wire whisk. Pour milk mixture evenly over bread slices. Cover and chill 1 hour or until liquid is absorbed.
Coat a large nonstick skillet with cooking spray, and place over medium heat until hot. Arrange half of bread slices in skillet, and cook 3 minutes. Turn bread over, and cook 3 minutes or until browned; remove from skillet. Repeat procedure with the remaining bread slices.
Serve with Strawberry Sauce, and garnish with Candied Lemon Rind.