In a large saucepan, bring the water, butter and salt to a boil over medium heat.
Add flour all at once and stir until a smooth ball forms.
Remove from the heat; let stand for 5 minutes.
Add eggs, one at a time, beating well after each addition. Continue beating until mixture is smooth and shiny.
Drop by 1/4 cupfuls 3 inches apart onto greased baking sheets.
Combine milk and egg yolk; brush over puffs.
Bake at 400° for 30-35 minutes or until golden brown.
Remove to wire racks. Immediately cut a slit in each for steam to escape; cool.
Fill the cream puffs with pudding just before serving.
Dust with confectioner's sugar. Refrigerate leftovers.