In a large bowl, whisk together milk, 1 Tbsp sugar, cinnamon, vanilla, nutmeg, salt, and eggs until well blended.
Place bread slices in a 13 x 9–inch baking dish. Pour egg mixture over bread and turn to coat. Let stand at room temperature 20 minutes, turning occasionally, until egg is absorbed.
in a small bowl, strawberries, remaining 1 Tbsp sugar, and orange peel. Let stand 20 minutes.
Melt 2 tsp butter in a large nonstick skillet over medium heat. Add 4 bread slices to pan and cook until golden on each side. Repeat with remaining butter and bread.
To serve, place 2 slices of bread on a plate. Sprinkle each serving with 1 1/2 teaspoons powdered sugar; top each with 1/2 cup strawberry mixture. Serves 4.