Place 160 g sugar and water in a small jug and stir until the sugar is evenly moistened. Pour the mixture into a saucepan.
Bring to a boil over high heat, swirling the pan occasionally to help dissolve the sugar. Continue cooking until the syrup turns a deep amber caramel colour, about 4–5 minutes.
Immediately pour the caramel into a baking or cake pan, swirling quickly to coat the base evenly. Transfer to the refrigerator and allow the caramel to harden.
Preheat the oven to 160°C (320°F).
In a saucepan, combine the milk, cream and 60g sugar. Heat until just boiling (about 82°C/180°F). Remove from the heat.
In a large bowl, whisk together the eggs and egg yolks until combined. Stir in the vanilla extract.
Gradually pour the hot milk mixture into the eggs, whisking constantly to prevent the eggs from curdling.
Strain the custard mixture through a fine-mesh sieve into a clean bowl for a smooth texture.
Place the caramel-lined cake pan inside a large roasting tin. Pour the strained custard mixture into the cake pan.
Carefully pour enough boiling water into the roasting tin to come halfway up the sides of the cake pan, creating a water bath.
Bake for 40–45 minutes, or until the custard is just set with a slight wobble in the centre.
Remove the cake pan from the water bath and allow it to cool completely. Refrigerate overnight to chill and set fully.
To serve, run a sharp knife around the edge of the pan to loosen the custard. Place a serving plate over the pan and carefully invert to release the crème caramel. Let the caramel sauce flow over the custard before serving.