This custard is Not the more common caramel flan. Here, the caramel flavor is in the custard itself. I usually double this recipe.

Caramelize sugar in a small iron skillet over a "quick fire." Add the hot water and stir til the sugar dissolves again. (I think I prefer the method where you add water at the beginning. You'd still need to add the hot water after the sugar is caramelized, though.) Scald the milk (I'd let this cool a bit-not too much, though). Add the melted sugar. Pour slowly over the egg yolks, whisking constantly as you do so. (This is how it was done in J°C; I now probably would add a little of the hot mixture to the egg yolks, and then add this back into the hot mixture-that seems to be how this is done most of the time.) Add the vanilla and beat til well blended. Pour into a small casserole and place in a larger pan with (hot) water coming halfway up sides. Bake at 325F til firm. Test by inserting knife in center; the custard should not adhere to the spoon. Recipe originally from The Joy of Cooking by Irma S. Rombauer (1936 ed.).