In a 1 qt saucepan over high heat, bring dried cherries and 3/4 cup water to boiling. Reduce heat to low; cover and simmer 10 minutes or until cherries are tender. Grease a shallow 3 qt casserole.
In a large bowl with wire whisk; mix milk, half -and-half, brown sugar, vanilla extract, eggs, and cinnamon until well blended. Drain cherries, add any liquid to the egg mixture. Put cherries aside. Add bread slices to the egg mixture and let soak for 10 minutes, turning slices for even soaking.
Preheat oven to 350 degrees. Arrange enough bread slices in bottom of casserole, in one layer, pushing slices together, to cover bottom. Sprinkle 2/3 cherries over bread in casserole. Arrange remaining bread, overlapping slices to fit, on top. Scatter last 1/3 of the cherries on top. Pour any egg mixture remaining in bowl over bread in casserole. Sprinkle with cinnamon sugar.
Bake bread pudding 1 hour and 30 minutes or until knife inserted in center comes out clean, covering loosely with foil during last 10 - 15 minutes of baking if top browns too quickly. Sprinkle with confectioners' sugar. Serve warm with whipped cream. Refrigerate leftovers.