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Apple Jelly:
Place apples in a heavy bottom pan with water.Add cinnamon sticks and bring to a boil.Cook until apples are very soft. Remove cinnamon and drain apples.Force them through a fine sieve into a liquid cup measure.Measure the amount of puree and transfer to medium size pan.Add the equivalent amount of sugar.Cook puree, over moderate heat,stirring constantly, until it thickens and begins to pull away from side of pan.
Pour puree into a lightly greased mold. Chill covered with plastic wrap until set, approximately 4 to 5 hours.Run a knife around sides of terrine and invert apple paste onto a platter.Cut in thin slices.
Pudding:
Place sugar in a heavy bottom small pan.Add ½ cup water and stir until sugar is dissolved.Cook over low heat, without stirring,until syrup boils and turns deep caramel color.Pour caramel into pan and tilt pan to coat bottom and sides of pan.
Butter bread slices and place a layer on the bottom of pan. Repeat another layer of buttered bread and cover bread with apple jelly slices. Repeat buttered bread layer and continue alternating with apple jelly. Finish with bread layer.
Combine eggs, sugar, milk and vanilla in a bowl, beating lightly.With a thin knife or metal spatula pull edges of pudding away from sides of pan and carefully pour milk mixture.Pour remaining milk over bread and let stand until milk is almost absorbed, occasionally pressing down on bread.
Bake in preheated moderate oven at 350°F (180°C) over hot water for 30 to 45 minutes or until pudding is set.Remove from oven and cool on rack.
Invert pan on a round platter and serve.
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