Preheat the oven to warm 170°C (Gas Mark 3, 325°F)-

Arrange the bread in a shallow dish and pour over the milk. Set aside to soak for 4 minutes. Using a slotted spoon, transfer the bread to kitchen towels to drain. Dip the bread into the beaten egg, then set aside on a plate.

Melt the butter in a flameproof casserole. Add the bread and cook until it is lightly and evenly browned. Meanwhile, combine the honey and sherry. Pour into the casserole.

Put the casserole into the oven and bake for 20 to 25 minutes, or until the bread is golden brown. Remove from the oven and serve at once, or set aside to cool completely before serving.