Preheat your oven to 350 degrees Fahrenheit.
In a saucepan over medium heat stir together the sugar and water. Keep stirring until it turns into a golden brown color. (About 5-8 minutes). Do not use a non stick saucepan for this. The sugar will crystallize and won’t turn into a caramel sauce.
Pour the caramel sauce into a 10 inch round baking dish and quickly tilt the pan to fully coat the bottom and a little bit of the sides. I’ve also used Bundt pans, and a Pyrex baking dish. Use whatever you have available. I warmed up my baking dish before putting the sauce in so that that it wouldn’t harden so quickly.
Put the cream cheese in a blender and blend for 30 seconds. Then add in eggs one at a time. Once all your eggs are added, add in the sweetened condensed milk, evaporated milk, and vanilla extract.
Pour into baking dish. Put your baking dish into a water bath. Submerge until halfway point.
Bake for 50-60 minutes. The middle of the flan should jiggle a bit.
Cool, then refrigerate for 5-6 hours or overnight.
Flip the flan upside down into a serving plate.
