Preheat your oven to 350°F (175°C).

In a saucepan over medium heat, combine ½ cup of sugar and water. Stir until it melts and turns a golden-brown color, then pour into the flan mold, swirling to coat the bottom.

In a blender, combine sweetened condensed milk, evaporated milk, eggs, and vanilla extract. Blend until smooth.

Pour the flan mixture over the caramel in the prepared mold.

Place the mold in a larger baking dish and fill the larger dish with water to create a water bath. Bake for 50-60 minutes until set but slightly jiggly in the center.

Allow the flan to cool to room temperature, then refrigerate for at least 4 hours or overnight.

To serve, run a knife around the edges, invert onto a plate, and let the caramel flow over the flan.