In a heavy-bottomed saucepan, combine the sugar and water over low heat.

Stir until the sugar dissolves, then stop stirring and let it cook until it turns into a deep amber color.

Add the butter and stir until melted and combined with the caramelized sugar.

Quickly pour this caramel into individual serving cups, swirling to coat the bottoms evenly. Set aside to cool and harden.

Preheat your oven to 350°F (175°C).

In a mixing bowl, whisk together the eggs, milk, vanilla extract, and a pinch of salt until well combined.

Place the caramel-coated cups into a baking pan filled with hot water, creating a water bath.

Pour the custard mixture evenly into the cups over the cooled caramel.

Carefully transfer the baking pan to the preheated oven and bake for about 30-35 minutes or until the custard is set but still slightly jiggly in the center.

Remove the custard cups from the water bath and let them cool at room temperature.

Once cooled, refrigerate the custard cups for at least 2 hours or until thoroughly chilled.

Serve the chilled caramel custard on its own or with a drizzle of extra caramel sauce.