Preheat & Prep: Preheat your oven to 325°F. Combine the sweetened condensed milk and hot water in a large glass or metal bowl, stirring until completely dissolved.

Temper the Eggs: In a separate bowl, beat the eggs until they are light in color and fluffy in texture. Pour a bit of the hot milk mixture directly into the eggs while whisking vigorously to temper them, then combine the two bowls fully. Stir in the vanilla extract and salt.

Fill the Dishes: Pour the hot mixture evenly into individual ramekins and place them on a baking pan with high sides. Alternatively, pour the entire mixture into a 2-quart baking dish instead.

Prepare the Water Bath: Place the pan in the hot oven and carefully fill the outer pan with a half inch of hot water.

Bake: Bake for 1 hour (for ramekins) or until a knife inserted in the center comes out clean. If using the larger 2-quart baking dish, bake for 1 hour and 40 minutes.

Cool & Serve: Allow the custard to cool for 1 hour. Sprinkle heavily with nutmeg and serve warm, or refrigerate to serve completely chilled.