In large bowl, combine bread, ham and 1½ cups cheese. Transfer to a greased 13x9-inch baking dish.
In same bowl, combine eggs, milk and soup; whisk until well combined. Salt and pepper to taste. Pour over bread. Top with remaining cheese.
Refrigerate, covered, several hours or overnight (no longer than 24 hours).
Bake, uncovered, in a preheated 350°F oven 60 minutes or until knife inserted in center comes out clean. Let stand 10 minutes before serving.