Preheat your oven to 350 degrees.
To make the caramel: Have ready a 2-quart round flan mold and a large roasting pan. Combine the sugar and water in a heavy-bottomed pot or pan. Place over medium-high heat and cook until the sugar begins to melt. Swirl the pan over the heat until the syrup darkens to a medium amber color, about 10 minutes; don't stir with a spoon.
Remove from the heat and then pour immediately into the flan mold. Tilt the dish so that the caramel evenly coats the bottom and place in the roasting pan and set aside.
To make the custard: Combine the evaporated and condensed milks, eggs, vanilla and sugar in a blender until evenly incorporated, about 10-20 seconds.
Pour the custard mixture into the caramel-coated mold and place the mold inside the roasting pan.
Pour hot (not boiling) water into the roasting pan to come halfway up the sides of the mold, being careful not get water into the custard.
Carefully transfer to the middle oven rack, and bake for 60 minutes or until the custard is just set and just jiggles slightly. Let the flan cool in the water bath and then refrigerate for at least 4 hours or overnight.
When ready to serve, run a knife around the inside of the mold to loosen the flan. Place a plate on top of the flan and invert to pop it out.