Slice and dice bread and set aside.
In a medium bowl, whisk the milk, 1/2 teaspoon vanilla, eggs, cinnamon, and sugar. Set aside.
In a small bowl whisk the cream cheese and 1/4 cup powdered sugar.
Add raspberries (with some juice) to cream cheese and mix thoroughly.
Gently fold bread cubes into the egg mixture until just wet.
Place half of bread mix into the bottom of a 9x9 greased pan.
Place dollops of half of the raspberry cream cheese mixture onto the bread pudding.
Pour the rest of the bread pudding mixture into the pan.
Dollop the rest of the raspberry cream cheese onto the top of the bread mixture.
Bake at 350 degrees for about 40 minutes or until set.
Meanwhile, in a small bowl combine the melted butter, 1/2 teaspoon vanilla, and 1/2 powdered sugar until smooth.
When the bread pudding is still warm, drizzle the frosting and serve warm.