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1. Preheat the oven to 350°F. In a heavy 1- to 1½-quart saucepan warm the cream and milk over high heat until small bubbles appear around the edge of the pan. Set aside off the heat.
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2. In a small heavy saucepan or skillet, caramelize the sugar by stirring it over moderate heat, until it melts and turns a light golden brown.
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3. Immediately pour the hot cream and milk in a thin stream into the caramel, stirring constantly with a large spoon. Continue to stir until the caramel has thoroughly dissolved.
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4. With a whisk, or a rotary or electric beater, beat the egg yolks until they are well blended. Then slowly pour in the cream mixture, stirring constantly with a spoon.
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5. Stir in the port and strain the mixture through a fine sieve into 12 4-ounce heatproof porcelain or glass individual molds or custard cups.
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6. Set the molds in a large roasting pan on the middle shelf of the oven and pour in enough boiling water to come halfway up the sides of the molds.
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7. Bake for 40 minutes or until a knife inserted in the center of the custard comes out clean. Cool to room temperature, then refrigerate for at least 3 hours, or until thoroughly chilled.
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8. To unmold the custard, run a sharp knife around the inside edge of each mold and dip the bottom briefly in hot water. Then wipe the mold dry, place a chilled serving plate upside down over each mold and, grasping mold and plate firmly together, quickly invert them.
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9. Rap the plate on a table and the custard should slide out easily. In Portugal, the custard is sometimes garnished with a flower blossom.
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