• Pre-heat the oven to 350F

Make caramel sauce

• In a small saucepan, combine sugar with water. Bring the mixture to boil over medium-high heat.
• Cook until the sugar reaches a medium golden brown color (about 5 minutes). Turn off the heat and remove the saucepan from the heat source immediately. The caramel sauce will continue to cook and become a deep golden brown, the desired color.
• Immediately pour about 2 tbsp of caramelized sugar into each 4-oz ramekin.
• Tilt the ramekin to spread the caramel evenly along the bottom.
• Then arrange the ramekins in a hotel pan (or any pan that has at least 2-inch deep) and set them aside.

Make flan mixture

• Combine condensed milk and warm water in a large mixing bowl. Stir until the milk dissolves completely.
• In another mixing bowl, use a hand mixer or a hand blender to whisk the eggs.
• Then carefully stir the egg mixture into the milk mixture. After that, strain the custard mixture through a fine-mesh strainer.
• Pour the flan mixture into the caramel-lined ramekins, make sure to fill them to just below the rim.
• Bring the tray of flan to the oven. Then pour enough hot water into the hotel pan to reach halfway up the sides of the ramekins.
• Bake at 350F for approximately 20-25 minutes. The flan should be almost set but still slightly soft in the center.
• You can insert a toothpick in the middle of the flan to determine its doneness. There should be little to no custard stick on the toothpick.
• Make sure to chill caramel flans completely before serving for at least 5 hours.

Unmold

• Run a small pairing knife around the edge of the custard, then invert it onto your choice of a serving plate.
• Give the ramekin a firm shake or tap on the bottom to release the flan onto the plate.
• Serve by itself or with shaved ice.