In a medium saucepan, heat the sugar over medium heat, stirring continuously until it dissolves and turns a golden brown color. Be careful not to burn it!

Once the desired color is reached, immediately pour the caramel into a round baking dish, swirling to coat the bottom evenly. Set aside to cool slightly.

In a large mixing bowl, whisk together the eggs, sweetened condensed milk, evaporated milk, and vanilla extract until smooth and well combined.

Pour the custard mixture over the hardened caramel in the baking dish.

Place the flan baking dish in a larger baking pan and add hot water to the outer pan until it reaches halfway up the sides of the flan dish.

Carefully transfer the pans to a preheated oven at 350°F (175°C) and bake for approximately 50-60 minutes, or until the flan is set and a knife inserted comes out clean.

Once baked, remove the flan from the water bath and let it cool at room temperature.

Once cooled, refrigerate for at least 4 hours or overnight. To serve, run a knife around the edges and invert onto a plate to let the caramel flow over the top. Enjoy!