Place milk and sugar in a large bowl. Stir until the sugar dissolves completely. Set aside.

Remove crusts from the bread slices. Tear into small pieces, and place in a blender. Process into fine breadcrumbs. (You can do this in batches).

Place breadcrumbs in a large bowl. Add milk little by little, stirring, until the bread slices are completely soaked in milk. Stir in vanilla extract. Set aside for 15 minutes.

Meanwhile, to make caramel, place sugar and water in a pan over low heat. Sugar gradually dissolves, and the mixture will bubble up. The sugar mixture will turn into sticky golden coloured caramel within a few minutes. Remove from heat. Pour caramel into a pudding bowl. Make sure caramel gets coated evenly on the base and sides of the bowl.

Spoon the bread mixture into the caramel coated bowl. Level the top. Cover the bowl tightly with aluminum foil. Using a skewer, poke a few holes on the foil.

Transfer the bowl into a steamer. Steam for 20-25 minutes or until the pudding is set.

When ready, take the bowl out of the steamer, and leave it to cool. To serve the pudding chilled, place in the refrigerator for about an hour. To unmould, tip it into a plate. Decorate with cherries and mint leaves.