Have clean and dry custard or other baking cups ready before starting this recipe.
Preheat oven to 275°F.

In a small, heavy skillet over low heat, stir 1/2 cup sugar and water until the sugar melts. Cook the mixture without stirring until the sugar turns a light caramel color. Divide the caramel among 6 4-ounce custard cups and let stand until cooled. Beat the eggs with the remaining sugar and add the scalded milk slowly, while stirring. Add the vanilla and strain carefully into the prepared cups to avoid disturbing the caramel.

Place cups in a shallow pan. Place pan in the oven and add water to pan. Cover with foil. Bake slowly for 1½ to 1¾ hours, or until a knife inserted in the center comes out clean. Remove from the water and cool to room temperature. Refrigerate for at least 2 hours or overnight.
To serve, run a knife around the edge of the custard and invert the cup onto a small plate.
The caramel that was poured into the cups will form the sauce.

Chef’s note: To remove the stuck on caramel that will be left in the cups, simply soak them in hot water.