In a medium saucepan, heat milk until steamy but DO NOT BOIL. Remove from heat and stir in vanilla.
In a medium mixing bowl, whisk together eggs, sugar and salt. Slowly add milk and vanilla mixture, whisking thoroughly and constantly.
Pour into four 5 oz. ramekins or custard cups and sprinkle with nutmeg.
Place ramekins into a baking pan. Carefully pour boiling water into the baking pan around the ramekins (do not drip water into ramekins) until water is 1/2 inch deep in bottom of baking pan. Bake at 325 F for 40-45 minutes or until a knife inserted into the center of one custard comes out clean.