In a medium bowl, combine sugar and cinnamon. Add eggs, milk, orange marmalade, and vanilla; whisk to combine.
In a large bowl, combine bread cubes and raisins; arrange in an ungreased 2-quart rectangular baking pan. Pour egg mixture over all.
Bake in a 325 degree F oven for 35 minutes (center may appear slightly wet but will set during standing). Cool on a wire rack for 10 minutes. Serve warm topped with Marmalade Sauce. Makes 6 servings.
To dry bread, place slices on a wire rack and let stand at least 4 hours.
In a small saucepan, combine cornstarch and finely shredded orange peel. Stir in orange juice and orange marmalade. Cook and stir over medium-low heat until thickened and bubbly. Remove from heat; if desired, stir in butter. Serve warm. Makes 1 cup.