Scalding the cream isn't critical but it is handy. Scalding (a holdover from the days before pasteurization) speeds total cooking time and helps dissolve the sugar. When you see small bubbles at the sides of the pan, the cream is hot enough.
Many recipes direct you to scald the milk and cream; this is a holdover from the days of unpasteurized milk. Scalding does, however, shorten cooking time because the milk is already hot; it also ensures that the sugar dissolves completely in the custard base before baking, so I recommend this step. If you're making a flavored custard, add any additional ingredients at this point so they can steep in the hot cream to extract their full flavor.
Don't dump the sugar directly onto the eggs and let it sit; this causes the yolks to "burn" into hard little lumps that detract from your creamy custard. Rather, add the sugar while your whisk is moving; this way, the sugar will be gradually incorporated into the eggs.
One of the most important techniques in baking is called tempering, which is the slow addition of a hot liquid to cold eggs. Tempering gradually brings the temperature of the two mixtures together and keeps you from making scrambled eggs, which is what you get when a scalding hot liquid shocks an egg. To temper, add a large spoonful of the hot cream to the egg-sugar mixture, whisking all the while. Add another spoonful, and then another, and continue until all the cream is mixed in.
Always cook custards in a water bath. A water bath shields the custard from harsh, direct oven heat and moderates the cooking. An oven any hotter than 325°F is asking for trouble; for custards, the more gentle the heat, the better.