Gather all ingredients. Preheat the oven to 350 degrees F (175 degrees C).

Place sweetened condensed milk, evaporated milk, eggs, cream cheese, milk, and vanilla extract in a blender; blend until smooth.

Ensure the cream cheese is softened to achieve a perfectly smooth mixture without lumps.📌

Place white sugar in an even layer in a saucepan over medium heat. Cook until the edges start to brown, about 1 minute; drag sugar into the center with a spatula once the edges start to brown. Continue cooking, stirring from time to time, until caramel is an even golden brown, 4 to 5 minutes.

Watch the sugar carefully as it can burn quickly. Remove from heat immediately once it reaches a golden brown color.📌

Meanwhile, pour 1 inch of boiling water into a large oven-safe pot or baking dish to create a water bath.

The water bath helps the flan cook evenly and prevents cracking.📌

Pour the caramel into a 9-inch flan mold or baking pan; swirl so that the caramel reaches 1 inch up the sides. Pour the blended condensed milk mixture on top. Set the mold into the water bath.

Work quickly with the caramel as it will cool and harden.📌

Set the flan and water bath in the preheated oven; bake until a damp table knife inserted into the center comes out clean, 45 minutes to 1 hour. Remove from the oven and let stand for 5 minutes.

Baking time may vary depending on your oven; check for doneness after 45 minutes.📌