Caramel: place in skillet on medium high heat. Stir constantly with a wooden spoon until sugar melts and begins to turn a golden brown. I like mine to be as dark as possible (short of burning). You will smell a 'smoky' scent which taints the flavor it you let it go a bit too long. When the caramel is ready pour it into a well oiled 1 quart mold (I use a fluted custard mold for mine) and tilt the mold until the bottom (not sides) is well covered. Set the mold aside and allow it to cool while you mix the custard.
Custard: mix custard well and pour into mold.
Place entire mold in a large pan and pour warm water in larger pan until it reaches half way (or more) up the side of your custard mold.
Place in a pre-heated 350 degree F oven and bake until the tip of a knife inserted in inserted in the center comes out clean.
Transfer Immediately into the refrigerator to stop the cooking. After the custard has cooled, cover and chill over night.
When ready to serve:
Run a knife around the edge to loosen (placing the mold in some warm water may aid in unmolding also...) Cover with a serving plate and invert to unmold.
Properly done, the caramel will flow down the sides of this lovely wonder. Do not be concerned if some caramel stays in the bottom of the mold, this is almost unavoidable. Slice and serve slightly chilled.
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