Add sugar in a dry pan and leave it untouched until the sugar melts down completely and turns slightly brown. Add water and the sugar syrup will start bubbling up.Do not stir just swirl to heat up evenly.

Once the mixture turns golden brown then pour the caramel into molds or ramekins immediately so that spreads to fill the base. Take a large baking pan and pour water up to 1 inch height. Arrange the ramekins inside the pan with water.

Beat eggs until fluffy then add sugar and beat it well until the sugar dissolves completely. I used my whisk to beat until fluffy.

Heat milk and allow it to boil. Once boiled, remove it from flame and cool it down for few mins then add it to the egg sugar mixture and beat for few mins. Add the vanilla essence , give a quick stir. Strain this through a strainer to remove undissolved egg white strands.

Now pour the milk egg mixture into the prepared ramekins. Preheat the oven to 190°C. Now leave the pan with ramekins arranged on lower rack of the oven. Bake in 190°C or 30-40 mins. Check by inserting a fork if it comes out clean, then your pudding is ready.

Caramel pudding is ready!