Preheat oven to 350°F.

Place bread in blender and chop until it is coarse crumbs.

Add beef, bread crumbs, 1 egg, 2/3 cup milk, 1 cup cheddar cheese, onion, carrot, 1 tsp salt, and 1/4 tsp pepper to a large bowl. Combine.

Place in loaf pan. Bake for 1 hour. Pour off excess fat, cool, then freeze.

Once thawed, combine 1/4 cup brown sugar, 1/4 cup ketchup, and 1 tbsp mustard. Brush sauce on top of meatloaf. Bake for 30 minutes or until thermometer reads 160°F.