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Whisk together first 6 ingredients together in a large bowl and set aside. In large skillet over medium high heat, melt 2 tbsp butter. Add sugar and the apples and sauté for 10 minutes, or until apples are slightly soft.
Butter a 9 x 13-inch baking dish and scatter ½ c cheese on bottom of dish. Layer half of bread cubes, half of apples and half of ham over cheese. Sprinkle with 1 c of cheese and layer remaining bread cubes, apples and ham. Top with last cup of cheese. Pour egg-milk mixture over top and gently press down with a large spoon to make sure the top layer is moist. Drizzle 2 tbsp melted butter over top.
Preheat oven to 350°F. Bake 45-55 minutes until golden brown and slightly puffed. Let stand 10 minutes before serving.
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