How to Make It
Whisk together eggs, 1 cup half-and-half, salt, cinnamon, nutmeg, and sugar until thoroughly blended. Place bread slices in a baking dish and pour wet mixture over top of the slices. Chill for 1 hour, carefully flip slices, and chill for 1 more hour. Pour out any excess liquid, and allow the slices to drain for 1 more hour, pouring off liquid as needed.
Meanwhile, whisk or blend together cream cheese, remaining milk, and powdered sugar until smooth.
Heat 2 tablespoons of butter over medium-low heat, and when frothing has stopped, add two slices of soaked bread. Cook until slightly crunchy on the bottom, being careful not to burn it. Flip the slices, and cook until the bottom is browned, and the French toast is heated all the way through. Place the cooked slices on a paper towel on a plate, and cover with a clean kitchen towel.
Remove the pan from the heat, wipe it out, add butter and cook the next slices.
For each serving, spoon cream cheese glaze over top, sprinkle colored sugar, and serve warm.