1) Lightly grease the moulds with a touch of butter.
2) Pre-heat the oven to 160°C (Gas Mark 3).
3) Into a small clean saucepan place the granulated sugar along with cold water on the hob over a medium heat and bring to the boil.
4) Continue to boil gently until the sugar begins to turn a light golden color and starts to caramelize.
5) Use an old pastry brush and a touch of cold water to brush around the inside of the saucepan from time to time top avoid the sugar from caramelizing on the sides of the saucepan.
6) Remove from the heat and carefully pour a little caramel into each of the moulds and allow them to cool and set.
7) Pour the milk into a clean saucepan, add a few drops of vanilla extract and place on the hob over a low heat to warm.
8) Break the eggs into a clean bowl, add the caster sugar and whisk well together.
9) Carefully whisk the warm milk into the eggs and sugar and pass through a fine strainer into a clean jug.
10) When the caramel has set, pour the custard into the moulds, place them into an ovenproof dish and half fill it with warm water to make a bain marie.
11) Place the dish into the pre-heated oven and bake for about 35 minutes or until the mixture is set and firm to touch without allowing the water in the dish to boil or the crème caramels may end up full of holes.
12) When cooked, remove the creme caramel from the oven, take out of the bain marie, allow to cool and then place the creme caramel in the fridge to chill.
13) When you are ready to serve, run a small knife around the edge of the moulds, place a plate on top of the mould and turn it upside down.