Preheat your oven to 325°F (160°C) to ensure even cooking.
Melt the finely chopped white chocolate in a double boiler or microwave-safe bowl until smooth.
Whisk together the egg yolks and 1/4 cup of sugar in a mixing bowl until pale and creamy.
Heat the whipping cream in a saucepan over medium heat until it begins to simmer. Remove from heat and stir in melted white chocolate and vanilla.
Slowly pour the warm cream mixture into the egg yolk mixture while whisking constantly.
Fill ramekins with the custard mixture, about three-quarters full, and place them on a baking sheet.
Create a water bath by pouring hot water into the baking sheet around the ramekins. Bake for 30-35 minutes until set but slightly jiggly in the center.
Cool the ramekins at room temperature for about 30 minutes, then refrigerate for at least 2 hours or overnight.
When ready to serve, sprinkle sugar on top of each custard and caramelize with a kitchen torch or under the broiler.
Allow to sit for a minute before serving, then crack the caramelized top with a spoon and enjoy!
