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Over low heat, gently shake sugar into a saucepan until melted and golden. Coat bottom and sides of a shallow oven proof dish with this caramel. Place in large pan. Put water in outer pan until halfway up dish.
In a bowl gently mix milks, water and lime peel. Add eggs through sleve.
Add vanilla. Stir gently. Remove peel.
Pour into caramel-coated dish. Bake at 330 degrees fahrenheit for 75 minutes. Cool, refrigerate covered. Invert on platter to serve.
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