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In a large bowl, toss together bread cubes, Cheddar and bacon. Divide among six 10-ounce individual casseroles or place all of the bread mixture in a 2-quart rectangular baking dish.
In a medium bowl, whisk together milk, eggs, parsley, mustard, pepper and onion powder. Pour over the bread mixture in casseroles or baking dish. Cover and refrigerate for 8 to 24 hours.
Preheat oven to 350°F. Bake, uncovered, for 25 to 30 minutes for individual casseroles (or about 40 minutes for 2-quart dish) or until a knife inserted near the center comes out clean. Let stand for 5 minutes before serving.