In a small and heavy saucepan, combine 1/2 cup sugar and 1/4th cup water.
Heat and stir until the syrup turns golden brown colour. Now remove pan from heat and while hot pour the caramel into a 1 litre quart mould and make sure caramel is evenly spread at the bottom and sides.
In a bowl, beat 3 eggs with an electric mixer and to this add 1 cup sugar and vanilla extract.
Gradually add milk stirring continuously.
Pour this mixture into caramel coated mould. Cover the mould tightly with aluminium foil.
Steam this for at least 20 minutes in a pressure cooker or steamer.