Heat the milk in a small saucepan over low heat with the vanilla bean and sugar, slowly bringing it just to a boil. Turn off the heat, remove the vanilla pod from the milk and slit in half lengthwise when cool enough to touch.  Scoop out the tiny seeds with the tip of a paring knife and return both seeds and pod to the milk to steep.

Preheat the oven to 325’F.  Place 6 custard cups in a baking pan that is large enough to hold all of the cups with ample space between the cups.

Stir the milk to make sure the sugar is dissolved.

Beat the eggs and egg yolk in a 1 quart measuring cup, then gradually whisk in the hot milk.  If using vanilla extract, add that to the mixture now.  Pour the custard through a strainer into each of the custard dishes, then sprinkle a little nutmeg over each.  Now fill the baking pan with hot water so that it comes up at least an inch on the sides of the custard cups.

Bake until the custard is set and an inserted knife comes out clean.  There should be just a bit of a wobble.  Cooking time will vary slightly depending on the size of your custard cups.  Approximately 35 minutes for small custards and 45 to 50 minutes for a single large custard.  Serve at room temperature or chilled–plain or accompanied with fruit, especially berries.