In a small and heavy saucepan, combine 1/2 cup sugar and 1/4th cup water.
Heat and stir until the syrup turns golden brown colour. Now remove pan from heat and while hot pour the caramel into a 1 litre quart mould and make sure caramel is evenly spread at the bottom and sides.
In a bowl, beat 3 eggs with an electric mixer and to this add 1 cup sugar and vanilla extract.