1 1/4 c. granulated sugar, divided as below
3 1/2 c. milk
4 eggs, beaten
1/3 tsp. vanilla extract

Heat 3/4 cup sugar in heavy skillet over low heat, stirring constantly with a wooden spoon, until sugar melts and turns golden. Pour into a 1 quart casserole. Spread in dish to coat bottom and sides evenly; cool. Heat milk to near simmer; pour into it the combined beaten eggs, 1/2 cup sugar, and vanilla. Pour into casserole; place casserole in a larger pan of water so that water comes at least 3/4 of the way up the sides. Bake at 325 degrees for 1 hour or until knife inserted comes out clean. Chill, unmold, and serve.