Step 1 -  Make the Caramel (15-20 minutes)

1. Add the sugar and water to a small saucepan. Cook over low to medium heat to let the sugar dissolve slowly.
2. Do not stir to avoid crystallization of the sugar and becoming grainy. If needed, gently swirl the pan in a circular motion. Cook until the mixture thickens into a beautiful brown caramel.
3. Carefully pour the caramel onto the bottom of the pan (wear mittens as the pan will become very hot). Turn the pan around to coat the bottom and sides as evenly as possible. Work carefully to avoid spilling but quickly because the caramel will start to harden.
4. If the caramel hardens and you haven’t covered the entire pan, set the pan directly over the stove burner for a few seconds at low heat. This will loosen up the caramel allowing you to work it again quickly to finish coating the pan.
5. Set the pan aside to let it cool completely. The caramel will cool to a hard surface.
6. Prep the hot water for the Bain Marie.

    Step 2 - Make the flan mixture (2-3 minutes) 

1. Preheat the oven to 350°F.
2. While the caramel is cooling, add the sweetened condensed milk, coconut milk, eggs, and vanilla in a blender.
3. Blend on high for 10-15 seconds until everything combines well. Do not over-blend to avoid creating bubbles and a foamy mixture. The idea is to get the ingredients to just mix well and evenly. If you want to ensure the flan is the silkiest, you can pass the mixture through a fine-mesh strainer so that no small particles get into the flan.
4. Pour the mixture on top of the caramel.  I used a 9x2 inch cake pan filled to the top, but it reduced as it cooked.

  Step 3 - Bake in the water bath (60-75 minutes)

1. Cover the flan with foil to keep any skin from forming, and place it in a larger pan where the flan can fit comfortably. Add enough hot water to cover up half of the cake pan.
2. Bake at 350 F (180 C) degrees for 1 hour and 15 minutes. The flan is done when a knife inserted in the middle comes out completely clean. If the flan still looks soft in the center after the knife test and has a bit of a jiggle, it's ok. It will firm up during refrigeration. 
3. Let the flan cool completely on a wire rack, then refrigerate covered with foil for at least 8 hours or overnight. This ensures the flan will have firmed up nicely and the flavors have intensified. It will also deliver a flan that is firm enough for unmolding.

Step 4 - Unmold the Flan

1. After the overnight rest, the next step is unmolding.
2. Take the flan out of the fridge 20 minutes before serving time. This allows the caramel to soften.
3. Using a paring knife, pass along the edges to loosen and help it come out effortlessly.
4. Place a serving plate on top and invert quickly. Wait a few seconds until you feel (and hear) the flan come down onto the plate.
5. Using a rubber spatula, scrape any residual caramel onto the flan. Sprinkle with toasted coconut or dried coconut flakes for decoration and enjoy!