Let's cook.
Preheat your oven to 325°F (160°C). Place four 6-ounce ramekins in a baking dish with high sides.
To make the caramel, combine 0.5 cup granulated sugar and 2 tablespoons water in a small saucepan over medium heat. Cook without stirring until the sugar dissolves and turns a rich amber color, about 5-7 minutes. Immediately pour the hot caramel evenly into the bottom of each ramekin, swirling to coat the bottom.
In a separate saucepan, heat the whole milk and 0.5 cup granulated sugar over medium heat until the sugar dissolves and the milk is warm but not boiling. Remove from heat and stir in the vanilla extract.
In a medium bowl, whisk together the 3 large eggs and 2 large egg yolks until just combined. Slowly pour the warm milk mixture into the egg mixture, whisking constantly to temper the eggs and prevent scrambling.
Strain the custard mixture through a fine-mesh sieve into a clean bowl to ensure a smooth texture. Carefully pour the strained custard over the caramel in each ramekin.
Pour hot water into the baking dish around the ramekins, reaching about halfway up their sides. This creates a water bath, which helps the custards cook evenly and prevents cracking.
Bake for 40-45 minutes, or until the custards are just set but still slightly wobbly in the center. A knife inserted near the edge should come out clean. Carefully remove the ramekins from the water bath and let them cool completely on a wire rack.
Once cooled, cover each ramekin with plastic wrap and refrigerate for at least 4 hours, or preferably overnight, to allow the custards to fully set and chill.
To serve, run a thin knife around the edge of each ramekin. Invert each custard onto a serving plate, allowing the caramel to drizzle down the sides.
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