Step 1: Preheat Your Oven

Set your oven to 325°F (163°C). This gives you time to prep the custard while the oven comes up to temperature.

Step 2: Mix the Milk Base

In a large mixing bowl, whisk together the sweetened condensed milk and hot water until the mixture is fully blended. The warmth helps dissolve and distribute everything evenly.

Step 3: Beat and Temper the Eggs

In a separate bowl, beat the eggs until pale and slightly frothy. Slowly drizzle a ladleful of the warm milk mixture into the eggs, whisking constantly—this step tempers the eggs so they don’t scramble. Gradually add the rest of the milk mixture, whisking until fully combined.

Step 4: Add Flavor

Stir in the vanilla extract and salt. Make sure everything is evenly distributed, but try not to create too many bubbles.

Step 5: Fill the Dishes

Place ramekins or your baking dish into a deep roasting pan. Carefully pour the custard mixture into the ramekins, leaving about 1/4 inch at the top.

Step 6: Water Bath Bake

Create a water bath by carefully pouring hot water into the roasting pan until it reaches halfway up the sides of the custard dishes. This gentle baking method prevents curdling and keeps the custard creamy. Bake for about 1 hour if using ramekins, or up to 1 hour 40 minutes for a larger dish. Custard is done when a knife inserted in the center comes out clean.

Step 7: Cool and Garnish

Remove the custard dishes from the water bath and set them on a cooling rack. Let them cool for about an hour. Once cooled, dust the tops with freshly grated nutmeg.

Step 8: Serve or Store

Serve warm, at room temperature, or chilled—it’s delicious any way. To store, cover with plastic wrap or foil and refrigerate for up to 3 days.