Heat 1/2 cup sugar in skillet over low heat until it caramelizes. Pour into 6 custard cups. Cool. Beat eggs until foamy. add remainder of sugar, stirring until well beaten. Scald milk. Cool milk and gradually add egg mixture. Stir until sugar dissolves and lumps disappear. Add vanilla. Pour into caramel lined cups. Put pan of hot water on lower baking rack with custard cups above. Bake at 350 for 1 hour and 10 minutes. Sprinkle with nutmeg just before serving. Makes 6 servings.