Peach Caramel French Toast

1 29-ounce can sliced peaches with syrup
1½ cup granulated syrup
¼ pound (1 stick) margarine or butter
1 cup light brown sugar
2 Tablespoons water
6 to 8 slices white bread
5 eggs
1¼ cups whole milk
1 Tablespoon vanilla

Drain the peaches and reserve the syrup for later. Heat the granulated sugar and butter or margarine in microwave on high for 1 minute. Add the brown sugar and microwave for one more minute. Add the two tablespoons of water and continue microwaving until it is thick and foamy, about 1 or 2 minutes. Pour the mixture into a 13x9x2 inch baking dish and cool for 10 minutes.

Place peaches on the cooled caramel sauce and cover with slices of bread placed close together. Beat the eggs, milk and vanilla extract until mixed and pour over the bread. Cover and refrigerate overnight.

To bake, preheat your oven to 350° and bake for 40 minutes. Loosely cover with foil for the last 10 minutes if it is browning too quickly. Serve with the warmed peach syrup.