Preheat oven to 375 and spray a baking dish with cooking spray.
Whisk together milk, cream, eggs, salt and white pepper in a large bowl; set aside.
Cook bacon until crisp, remove from pan and drain on paper towels, then chop into bite-sized pieces.
Cook shallot in bacon fat over medium heat until golden, only about one minute.
Add bacon, bread, cheese, cooked shallots and dried parsley into custard mixture so that all bread is covered; allow to soak for about 1/2 hour.
Transfer mixture into baking dish and cover with foil.
Bake for 30 minutes, then remove foil and bake for additional 10 minutes or until golden brown.