Mix granulated sugar and water in a saucepan by tilting the pan. Then simmer until the sauce is browned. (Do not mix it with a spoon but tilt the pan to mix it. The sugar will recrystallize if you mix it with a spoon.) Pour the sauce into heat-resistant cups before it gets hard.
Custard
Microwave the milk for 2 minutes just until warm. Add 2 tsp. of water in the saucepan to dilute the caramel, then mix in the milk. In a bowl, lightly beat the eggs until combined but not foamy. Dissolve granulated sugar, then gradually add the milk mixture. Strain through a strainer to make it smooth. Pour the egg mixture over the sauce in the cups. Cover with plastic wrap or aluminum foil.
Steam in the Pan
Place some paper towels or a dish towel in a frying pan (so that you can gently steam the Puddings), then place the cups. Slowly add hot water in the pan (just about a half-inch across the bottom of the cups), cover, then cook on low for 20-25 minutes. Stop the heat and let them steam for 5 minutes with the remaining heat. Serve warm or put in the fridge to serve cold.
