Arrange half of challah bread in a lightly greased 13- x 9-inch pan. Sprinkle with cheese pieces, and top with remaining bread.
Whisk together eggs and next 3 ingredients; pour over bread mixture, pressing bread cubes to absorb egg mixture. Cover and chill 8 hours.
Bake, covered, at 350° for 25 minutes. Uncover and bake 20 more minutes.
Heat sliced strawberries and strawberry preserves in a saucepan over low heat, and serve over toast.
*French bread may be substituted.
To Lighten: Substitute 1 (8-ounce) package Neufchâtel cheese for cream cheese, 1 1/2 cups egg substitute for eggs, and 4 cups fat-free milk for half-and-half.