Layer half of the bread cubes in a greased 13x9-in. baking dish. Sprinkle with ham and 1 cup cheese. Top with remaining bread cubes. Combine the parsley, onion, basil and pepper; sprinkle over bread. In a bowl, beat the eggs and milk; pour over the top. Sprinkle with remaining cheese. Cover and refrigerate overnight.
Remove from the refrigerator 30 minutes before baking. Bake, uncovered, at 350° for 40-50 minutes or until a knife inserted in the center comes out clean.