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Preheat the oven to 325F. Have a kettle full of boiled water ready. Place a tea towel in a large baking dish which will hold a large gratin dish which can hold over 3 cups of liquid.
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In a saucepan, add the cream, eggnog, and chai spices. Heat on medium till just starting to steam. The temperature should be 160F. Remove from the heat and let it cool slightly.
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In the meantime place a medium bowl onto a damp wash cloth. Whisk the egg yolks in the bowl with 1/3 cup granulated sugar till completely combined and has turned a paler yellow colour.
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Very slowly, while continuously whisking, drizzle in 1/4 cup of the warmed cream mixture. Once completely mixed in, add a bit more of the cream. Doing it slowly will temper the eggs so that they will not scramble and turn rubbery. Once all the cream has been incorporated into the eggs you can stop.
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Place the gratin dish into the tea towel lined baking dish. Bring the baking dish over to the stove. If you are worried about transferring the dish once the custard mixture has been added to the gratin dish and the boiling water poured in around it, then pour the custard into the gratin dish and transfer the baking dish to the oven onto the centre rack.
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Pull the rack out slightly, and slowly pour boiling water into the baking dish around the gratin dish till it has reached half way up the sides of the gratin dish. Push the rack in fully, and close the door.
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Bake till the edges are set, and the centre is ever so slightly jiggle. You don't want it to bake until completely set, since it will continue to set as it cools. This custard should be silky, soft set and creamy even when chilled. For a larger dish like this it may take between 35-40 minutes.
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Remove the gratin dish gently from the water onto a wire rack to cool, about 2-3 hours. From here it can go into the fridge to set completely. If you are going to cover the gratin dish, ensure that the custard has completely cooled, or else any condensation that occurs will drip back onto the surface of the custard off of the plastic wrap.
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The day of serving, sprinkle 2-3 tablespoons of sugar evenly over the surface of the custard. Till the gratin dish so that the sugar moves around to fill in all the edges. Don't be stingy with the sugar. There should be no custard peeking through.
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Using a kitchen torch, get in close and evenly burn the sugar till it bubbles and turns a deep brown. Don't stop before this happens, or else you will not achieve the crust that this dish is known for. Let the sugar harden for a few minutes before serving.
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See blog post for more details, especially about how to size up correctly.