Bring the apricots in their soaking liquid to the boil, then drain, cool and chop finely.
Dissolve the custard powder in 1/2 cup cold milk and set aside. In a non-stick saucepan, combine the milk and sugar and bring to a boil. Add the custard powder mixture and simmer for 3-4 minutes until the custard is thick.
Strain the mixture if it appears 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.