Preheat oven to 180°C. Whisk the eggs and sugar in a bowl until the sugar dissolves. Whisk in the vanilla extract, milk and cream.
Pour the mixture into a 4 cup (1 litre) ovenproof dish. Sprinkle the top with nutmeg. Place the dish in a roasting pan and pour enough boiling water in to come halfway up the side of the dish.
Bake for 40 minutes, until the custard is just set - it will still be slightly wobbly, but will firm up on standing. Remove the dish from the roasting pan, and serve warm or at room temperature with chopped fresh peaches.
