Peel and half two of the peaches, immerse in two cups of champagne with stick of cinnamon and 1/2 cup of sugar. Bring to a boil and then turn down the heat to a slow simmer for about 15 minutes until peaches are soft. Remove peaches and cinnamon stick, keep simmering the liquid until it thickens to a light syrup. Put peachs back in syrup and chill for 2 hours.
Combine milk and cream in heavy medium saucepan. Scrape in seeds from vanilla bean; add beam. Bring milk mixture to simmer. Remove from heat.
Whisk egg yolks and sugar in medium bowl to blend. Gradually whisk hot milk mixture into yolk mixture. Return custard to sauecpan. Stir over low heat until custard thickens and leaves path on back of spoon when finger is drawn across, about 5 minutes (do not boil.) Strain sauce into bowl. Cover and chill for 2 hours.
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