Preheat oven to 325°. Butter an 11x7-inch baking dish. Tear bread into a bowl. In a large bowl, combine sweetened condensed milk and eggs; blend well. Add diced peaches, peach juice, hot water, melted butter, cinnamon, and vanilla. Stir in, moistening completely. Turn into prepared baking dish. Bake 1 hour and 10 minutes or until a knife inserted in center comes out clean. Cool slightly and serve warm with ice cream, whipped topping, or dessert sauce. Cover and refrigerate leftovers. Serve this bread pudding with a caramel or butterscotch sauce.