Step 1

Preheat the oven to 325 degrees F, with a rack in the middle of the oven. Have ten 6-ounce ramekins and a roasted pan at hand.

Step 2

Combine the sugar and water in a medium saucepan over medium heat. The sugar will begin to melt, and the mixture will bubble. Swirl the pan occasionally, but do not stir. Continue cooking, swirling the pan from time to time, until the syrup is a rich caramel color, 7 to 10 minutes. Divide the caramel evenly among the ramekins, tilting them so that it evenly coats the bottoms. Set aside to cool while you make the custard mixture.

Step 3

In a blender, combine the condensed milk, evaporated milk, cream cheese, eggs and vanilla; blend until smooth. Slowly, so that not too many bubbles form on the surface, pour the mixture into the caramel-lined ramekins, dividing it evenly.

Step 4

Place the ramekins in the roasting pan. Carefully pour enough hot water to come about one-third up the sides of the ramekins, making sure that you don't splash any water into the ramekins. Lay a sheet of foil loosely over the pan and very carefully transfer to the oven. Bake for 50 to 60 minutes, until the flans have set but still jiggle slightly in the center when shaken. Gently remove the foil- watch out for the hot steam.

Step 5

Let the flans cool to room temperature in the water bath. Remove from the water bath, cover each ramekin tightly with plastic wrap, and transfer to the refrigerator. Chill for at least 2 hours.

Step 6

To serve, run a wet dinner knife around the edges of each flan to loosen it from the ramekin. Invert the ramekin onto a plate and let the flan slide out. Serve cold.