Preheat oven to 350 degrees.

Heat milk, do not allow to boil.

Beat eggs and add a littlle of the warm milk gradually to eggs to temper them and avoid scrambled eggs.

Add egg mixture to remaining milk and add vanilla and sugar.

Pour into greased ramekins and sprinkle grated nutmeg over top.

Place the pan in a larger pan filled with warm water about 1/2 way up the ramekins and bake for approx. 40 mins or until set.

Remove and let cool

Serve