In a saucepan, bring the water and 125 ml (½ cup) of the sugar to a boil. Cook without stirring until the mixture turns an amber colour. Off the heat, gradually add the cream. Beware of splattering. Bring to a boil, stirring until the caramel is smooth. Set aside.
In a bowl, combine the remaining sugar with the cornstarch. Add the egg yolks and stir thoroughly with a whisk. Stir in the milk. Pour into the saucepan with the caramel. Bring to a boil, stirring and scraping the bottom of the pan. Simmer for about 30 seconds.
Pour into a bowl and cover with plastic wrap directly on the pudding. Let cool and refrigerate for at least 6 hours or until the pudding is completely chilled.
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