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Preheat oven to 325°F.
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Prepare an ice bath and set aside.
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Place eight ramekins in two baking pans lined with kitchen towels or 8-inch round cake pan.
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Bring a large pot of water to boil; keep hot until ready to use.
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Meanwhile, in a small saucepan, heat 3/4 cup sugar with the water over medium heat; cook until sugar is dissolved, about 5 minutes.
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Swirl pan occasionally, DO NOT STIR.
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Wash down sides of pan with a pastry brush dipped in water to prevent crystals from forming.
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Increase heat to medium-high; continue cooking until caramel is amber, about 8 minutes, gently swirling pan to color evenly.
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Remove from heat,and immerse bottom in ice bath for 3 seconds to stop cooking.
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Dry bottom of pan.
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Working quickly, pour about 1 tablespoon into each ramekin; OR pour all into cake pan and swirl to coat bottom evenly; set aside.
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In a small saucepan heat milk over medium heat just until bubbles form around edges and milk starts to steam,5 to 6 minutes Turn off heat.
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In a large bowl, whisk together yolks, eggs, and remaining 3/4 cup sugar until combined.
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Slowly add hot milk whisking constantly.
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Pour mixture through a fine sieve into clean bowl; skim off surface foam with a spoon.
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Stir in Vanilla, and pour custard into ramekins or cake pan.
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Carefully pour the hot water into baking pan until it reaches halfway up the side of ramekin or cake pan.
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Bake until center is set when gently touched with finger, 30 to 35 minutes.
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Remove from oven transfer to a wire rack to cool completely.
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Cover with plastic wrap, and place in refrigerator to chill, at least 6 hours or overnight.
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To unmold, run a sharp knife around edges and place a serving plate upside down over the top; invert and gently lift pan to remove.
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Serve.