Bring the apricots and the water they were soaked in to the boil; drain, cool and chop finely.
Dissolve the custard powder in 125ml cold milk and set aside. Mix remaining 250ml milk and sugar together in a saucepan; bring to a boil over low heat. Add the custard powder mixture; stir and cook for 3 or 4 minutes until the custard is thick.
Pass the mixture through a sieve if it looks lumpy. Cool completely; add the cream and apricots and mix well. Pour into a shallow container, cover and freeze till almost set.
Divide it into 2 batches and churn each batch separately in a blender till the ice crystals break down. Transfer to a shallow container. Cover and freeze till firm.