Gather your supplies and ingredients . Preheat the oven to 350 Degree F. Have some hot water ready.
Make caramel by heating ¼ c sugar in a heavy bottomed pan over gentle heat till it turns to a dark gold liquid . Pour the caramel into the waiting flan molds and swirl to coat the bottoms evenly. Set aside .
Heat milk in a heavy bottomed pan with the remaining sugar . Meanwhile combine the eggs and the yolks in a large pan and whisk till the mixture is frothy . Once the milk comes to a boil turn the heat off and slowly add a couple of ladles of milk to the egg mixture while whisking the mixture continuously . This will temper the eggs and prevent them from curdling .
Pour the tempered egg mixture into the hot milk , this time stirring the milk vigorously . Add the vanilla, nutmeg and salt . Stir to combine and heat the custard mix on low heat for a couple minutes until it begins to thicken.
Turn off the heat . Strain and pour the custard into the waiting mold/s.
Place the mold/s in the roasting pan. Pour some hot water into the pan so that the molds are sitting in about 1 inch water or the water is about half way up the sides of the molds.
Put the water bath in the oven and bake for about 40 minutes to an hour depending on the size of the flans . The flan is ready when the custard begins to harden on top . At this point if you gently shake the pan the center of the flans should wiggle just a bit .
Remove the molds form the oven . Cool for 30 minutes and refrigerate covered for at least an hour or till ready to serve.
When ready to serve , run a knife along the side of the mold to loosen the flan and invert it onto a serving plate .