Preheat the oven to 350 degrees F.
Butter a baking dish and set aside.
Break the bagels and drop into a bowl. Just pull it apart with your hands.
Add the milk a little at a time over the bread.
Mix it with you hands and make sure the bread absorbs the milk.
In a small bowl, combine the eggs and the sugar using a whisk.
Add in the cream cheese.
Pour in the vanilla extract. Then pour over the bread.
Pour the bread pudding into the buttered dish, spreading it evenly in the dish.
Place the dish in a shallow roasting pan filling the pan with boiling water 1″ up the side of the casserole dish.
Place in the oven and bake 50 – 60 minutes. You will know it is done when a knife goes in and comes out clean.