- Preheat oven to 350°F. Cook bacon in large skillet until crisp. Reserve 2 tablespoons of the drippings. Drain bacon on paper towels; crumble and set aside. Add onion to drippings in skillet; cook and stir 3 minutes or until softened.
- Spread 1/2 of the bread cubes in 13x9-inch baking dish. Layer with 1/2 each of the onion, bacon, Cheddar cheese and mozzarella cheese. Spread evenly with cottage cheese. Top with remaining bread cubes, onion, bacon, Cheddar cheese and mozzarella cheese.
- Beat eggs in medium bowl until foamy. Add milk, mustard, nutmeg and pepper; beat until blended. Pour evenly over top. Press bread cubes lightly into egg mixture until completely covered. Let stand 10 minutes.
- Bake 40 to 50 minutes or until center is set and top is golden brown.