Make the caramel by adding the sugar and a tablespoon of water to a dry frying pan, and place it over medium high heat. Using a heat resistant, plastic spatula, stir as the sugar begins to melt. The process will go rather slowly at first, but then increase rapidly, so turning down the heat to medium makes it easier to retain control. Add some more water along the way. When the caramel has obtained a light golden brown color, remove the frying pan from the heat, as the browning process will continue after the skillet is withdrawn from the stove.
Using a large spoon, transfer about a tablespoon of the caramel to one mold at a time. With your hands, tilt and turn to dress the entire inside of the molds, until coated with caramel. Work rapidly, as the caramel will stiffen quickly.
Preheat the oven to 300 Fahrenheit (150 Celsius). In a small pot, gently heat the milk and cream over medium low heat. The mixture is supposed to get warm, rather than hot, in order to extract flavor from the vanilla. Lengthwise, cut the vanilla pod in two and, using the backside of the blade of the knife, scrape out the seeds. Repeat on the other halve, and add seeds and pod to the pot.
In a medium bowl, break the eggs and whisk lightly, until smooth. Do not whisk too much air into them, as the aim is a rather compact custard. Remove the vanilla pod and whisk the warm milk and cream into the eggs. Using a spatula, transfer the remaining vanilla seeds from the pot into the mixture. If the caramel has stiffened, reheat over medium heat until runny enough to pour, and add it to the mixture. Stir well and pour into the caramel coated molds. Place in an ovenproof dish, and fill the dish with water up to the rim of the molds. Cover the dish with aluminum foil to protect the top of the custard from direct radiation heat. Bake in the oven for 35 minutes. Check for doneness by poking the custard with a thin knife; if the blade comes out clean, it has set in the middle. Leave to cool.