In 2-quart saucepan over high heat, heat dried cherries and 3/4 cup water to boiling. Reduce heat to low; cover and simmer 10 minutes or until cherries are tender.
Meanwhile, grease shallow 3-quart casserole. Cut bread into 1-inch-thick slices.
In very large bowl, with wire whisk or fork, mix milk, brown sugar, vanilla extract, cinnamon, egg whites, and eggs until well blended. Drain cherries, adding any liquid to egg mixture. Set cherries aside. Add bread slices to egg mixture; let soak 10 minutes, carefully turning slices occasionally for even soaking.
Preheat oven to 350 degrees F. Arrange enough bread slices in bottom of casserole, in one layer, pushing slices together, to cover bottom. Sprinkle all but 1/4 cup cherries over bread in casserole. Arrange remaining bread, overlapping slices to fit, on top. Pour any egg mixture remaining in bowl over bread in casserole.
Bake bread pudding 1 hour and 30 minutes or until knife inserted in center comes out clean, covering loosely with foil during last 10 to 15 minutes of baking if top of pudding begins to brown too quickly. Top with remaining cherries. Sprinkle with confectioners' sugar if you like. Serve warm. Or, refrigerate to serve cold later.