Preheat your oven to 375 degrees.

In a sauce pan, melt the sugar over medium high heat. After about 10 minutes, once it's golden brown, add the water and let it cook, stirring lightly, until it thickens a bit.

Pour the caramel into a 10 inch Angel Food Pan and swirl it to cover the bottom and sides. Let it sit for a few minutes so it hardens. It is important that the caramel firms before you add the flan mixture so they don't mix together.

Add the sweet condensed milk, milk, eggs and vanilla extract to a large blender jar. Blend for a few minutes until smooth. (If you can't fit all the ingredients, divide them equally into 2 batches!)

Pour the flan mixture into the angel food pan and cover with foil.

Fill a large baking pan (a lasagna dish works great!) halfway through with water and place the angel food pan in it.

Bring it to the oven and bake it in bain marie for 1 hour and 30 minutes or until the top is golden brown. I like to wiggle the pan a bit to see if it's still liquidy. Sometimes I have to leave it for an extra 15 minutes. You can also insert a cake tester to check. It should come out clean or almost clean.

Let the flan cool and transfer it to the fridge to cool overnight.

To remove the flan from the mold, just run a knife along the sides and then carefully flip it on a serving plate.