Preheat the Oven: Set your oven to 325°F.
Mix Condensed Milk and Water: In a bowl, combine the water and condensed milk.
Beat the Eggs: In another bowl, beat the eggs until they are fluffy and light.
Combine Ingredients: Pour a little of the condensed milk mixture into the eggs and mix well. Then add the remaining condensed milk mixture to the eggs, and stir in the salt and vanilla.
Prepare for Baking: Spoon the mixture into 8 ramekins or a 2-quart baking pan.
Bake in a Water Bath: Place the ramekins or baking pan into a larger pan. Pour water into the larger pan to come up ½-inch. This creates a water bath that helps the custard cook evenly.
Baking Time: Cook in the oven for an hour if using ramekins, or an hour and 40 minutes if using a baking pan.
Cool and Serve: Let the Amish custard cool completely, then sprinkle with nutmeg and serve.
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