In a bowl, mix together the softened cream cheese, confectioners’ sugar, 2 tablespoons of milk, and 1 teaspoon of vanilla extract until the mixture is smooth and creamy. Gently fold in 1 cup of the blueberries to distribute them evenly throughout the mixture.

Layer the bottom of a 10×14-inch baking dish with bread cubes, creating an even base. Spread the cream cheese mixture over this layer of bread cubes. Once the mixture is evenly spread, top with the remaining bread cubes to form the second layer.

In a large bowl, whisk together 2 cups of milk, eggs, 2 teaspoons of vanilla extract, cinnamon, and nutmeg until fully combined. Pour this mixture over the layered bread in the baking dish, ensuring all the bread is soaked. Sprinkle 1 cup of blueberries evenly on top. Cover the dish tightly with aluminum foil and refrigerate for 8 hours or overnight. Remove the dish from the refrigerator 30 to 60 minutes before baking.

Preheat your oven to 375°F (190°C) to prepare for baking the dish.

Bake the dish in the preheated oven for 45 minutes with the foil on. After 45 minutes, remove the foil and continue baking until the center is set and the top is lightly browned, about 30 more minutes. The total baking time should be approximately 75 minutes.

Once baked, remove the dish from the oven and let it cool slightly before serving. Enjoy your delicious, creamy blueberry layered bread pudding!