Preheat your oven to 350°F (175°C). Grease a 13×9 rectangular pan.
Arrange 8 slices of bread in a single layer at the bottom of the prepared pan. Set aside.
To make the cream cheese filling, add softened cream cheese to a bowl and beat with a mixer until light and fluffy, about 3 minutes. Add 1/4 cup sugar, egg, and vanilla extract. Beat until smooth and combined.
Pour the cream cheese mixture over the bread layer in the pan, and spread evenly using a spatula.
In a medium bowl, mix the berries with the remaining 1/2 tablespoon of sugar. Toss them over the cream cheese filling layer.
Top the casserole with the remaining 8 slices of bread, pressing down slightly.
In a large bowl, whisk together the eggs, ground cinnamon, vanilla extract, and salt until well combined. Add the milk and half and half, whisking gently to combine.
Slowly pour the egg mixture over the casserole, making sure it’s evenly distributed. Press down gently with the back of a spoon to help the bread absorb the mixture.
Bake in the preheated oven for 50-60 minutes, or until fully cooked and set.
Let the casserole sit for 10-20 minutes before serving. Garnish with powdered sugar and enjoy!