Step 1: Slice your stale bolillo or French bread into 1-inch thick rounds. If your bread isn’t stale, you can lightly toast the slices in a dry pan or oven until slightly firm and golden.
Step 2: In a large skillet over medium heat, melt 2 tablespoons of butter or heat 2 tablespoons of vegetable oil. Fry the bread slices in batches until golden brown on both sides. Drain on paper towels.
Step 3: In a medium saucepan, combine the water, piloncillo (chopped), cinnamon sticks, and whole cloves. Bring to a boil over medium-high heat, stirring occasionally until the piloncillo has completely dissolved. Reduce heat to low and simmer for about 10-15 minutes, allowing the flavors to meld and the syrup to thicken slightly. Strain the syrup through a fine-mesh sieve to remove the cinnamon sticks and cloves; set aside.
Step 4: Preheat your oven to 350°F (175°C). Lightly grease a large baking dish (approximately 9×13 inches or a similar size). Start by arranging a single layer of fried bread slices at the bottom of the dish, overlapping them slightly if needed.
Step 5: Drizzle a generous amount of the warm piloncillo syrup over the bread layer, ensuring each slice is moistened. Sprinkle a portion of the shredded cheese, raisins, peanuts, and pecans evenly over the syrup-soaked bread.
Step 6: Repeat the layering process: bread, syrup, cheese, fruits, and nuts, until all ingredients are used, ending with a final layer of cheese, raisins, peanuts, and pecans on top. Ensure the top layer is well-covered with syrup and toppings.
Step 7: Cover the baking dish loosely with aluminum foil and bake for 25-30 minutes, or until the cheese is melted and bubbly, and the bread has absorbed most of the syrup. Remove the foil for the last 5-10 minutes if you prefer a slightly crispier top. Allow the capirotada to cool slightly before serving.