Caramelize sugar by pouring into a heavy saucepan and stirring continuously with a WOODEN spoon over a low flame until sugar melts and turns golden brown.
Pour sugar immediately into a 1-quart casserole, coating the bottom and sides evenly (accomplished by holding casserole dish in your hands and carefully tilting to coat sides). **BE CAREFUL WITH POURING OF HOT SUGAR AS IT CAN CAUSE SEVERE BURNS!
Allow sugar to cool.
Prepare custard by beating eggs, adding milk and vanilla; mix well.
Pour into casserole and set casserole into larger pan containing 1-inch of hot water.
Bake at 350°F for 1-1 1/2 hours or until knife inserted comes out clean. It should be golden brown on top.
To serve: Loosen around sides with a spatula and turn onto a serving dish.
Chill and serve with the sauce created from the casserole dish.