Step 1: Make the Caramel - In a small saucepan, combine the granulated sugar and water. Heat over medium heat, stirring gently until the sugar dissolves. Allow to boil without stirring until it turns a golden amber color. Remove from heat.
Step 2: Prepare the Baking Dish - Pour the caramel into the bottom of your baking dish, tilting to coat evenly. Set aside to cool and harden.
Step 3: Blend the Flan Mixture - In a mixing bowl, whisk the cream cheese until smooth. In a blender, combine eggs, sweetened condensed milk, evaporated milk, vanilla extract, and salt. Blend until smooth.
Step 4: Combine and Pour - Add the cream cheese mixture to the blender, blend again until smooth. Pour over the hardened caramel in the baking dish.
Step 5: Prepare the Water Bath - Preheat the oven to 350°F (175°C). Place the filled baking dish into a large roasting pan and fill with hot water halfway up the sides of the flan dish.
Step 6: Bake the Flan - Bake for 50-60 minutes or until set but slightly jiggly in the center. Test with a knife; it should come out clean.
Step 7: Cool and Chill - Let the flan cool to room temperature, then refrigerate for at least 4 hours, preferably overnight.
Step 8: Serve - Run a knife around the edges, flip onto a plate, and enjoy!