Caramel Pudding / Flan

Ingredients
Milk - 2 cup
Eggs - 3
Sugar - 1/2 - 3/4 cup + 4 tbsp
Vanilla extract - 1 tsp
Water - 1/8 cup

Directions
1. Add 1/8 cup water and 4 tbsp sugar to a thick bottomed vessel.Heat this pan and allow the sugar to melt and caramelize.Do not stir,only shake/swirl the vessel.After 8-10 minutes the liquid starts bubbling and turns brown color.
2. When it turns golden brown in color,remove from heat and pour it into the ramekin(or any oven safe /heat withstanding small bowl)
Swirl it to spread the caramel syrup evenly on the bottom of the bowls/ramekins
3. Whisk together egg and sugar in a large bowl. Stir in vanilla essence and milk. Beat and mix well.Pour this over the caramel syrup in ramekin/bowls.It will harden in seconds
4. Cover it with foil paper -optional
5. Boil water in a wide and deep vessel and keep the ramekins/bowls in it(fill the water upto 1/2+ level of ramekin-do not allow boiling water to seep into the bowl) .Cover with lid and cook for 20 minutes.Take out.
OR 
Place the ramekins in an oven safe pan ,partially filled with water.Bake for 40-45 minutes at 350 F until the center is firm but wobbly
6. Keep it in refrigerator for 2 hrs or until the time of serving.
7. To take it out from the ramekin,run a knife along the sides of the ramekin,and place a dessert plate upside down over the ramekin. Now holding tightly,invert the ramekin and plate together.Lift the ramekin slowly,slightly shaking to loosen the pudding. Caramel syrup will run down the sides.