Preheat oven to 350?F.  Spray 4 (4-ounce) custard cups with nonstick cooking spray.

Melt butter in medium skillet over medium-high heat. Add apple and 1/4 teaspoon cinnamon. Cook and stir 5 minutes or until tender; set aside.

Combine eggs, milk, vanilla, remaining 1/4 teaspoon cinnamon, salt and nutmeg in medium bowl. Add bread cubes. Let stand about 5 minutes to allow mixture to soak into bread. Fold in apples.

Divide bread mixture evenly between prepared custard cups. Bake 20 minutes or until set and golden brown. Let stand 5 minutes. Run a knife around edges of cups; lift out French toast. Serve immediately.