Remove crusts from slices of bread. Butter each slice lightly. Stack into two piles 5 slices high. Using very sharp knife, slice into 1-inch cubes.
Break up one pile of buttered bread cubes and distribute over bottom of well-greased baking dish. Sprinkle 1/2 cup cheese over bread. Follow with half of remaining bread cubes and another 1/2 cup cheese. Repeat, ending with last 1/2 cup cheese over top.
Beat eggs until well mixed and frothy. Gradually add milk and salt and continue to beat a few seconds longer. Pour egg and milk mixture over bread and cheese without disturbing layers. Allow mixture to stand 1 hour. Place in 300° oven 40 minutes or until top is golden brown.