Preheat the oven to 350°F (175°C). Bring a kettle or pot of water to a near-boil for the water bath.

In a small saucepan over medium heat, combine the sugar and water. Cook without stirring, swirling the pan occasionally, until the sugar melts and turns a deep amber color, about 8 to 10 minutes. Watch closely near the end, since it can burn quickly.

Immediately pour the caramel into the bottom of a 9-inch round cake pan or flan mold, tilting the pan so the caramel coats the bottom in an even layer. Set aside to cool and harden slightly while you make the custard.

In a blender or large bowl using a hand mixer, blend the cream cheese, sweetened condensed milk, and evaporated milk until completely smooth, with no lumps of cream cheese remaining. 5. Add the eggs, vanilla extract, and salt. Blend just until fully combined; avoid overmixing, which can add excess air bubbles to the custard.

Pour the custard mixture over the hardened caramel in the pan. Cover tightly with aluminum foil. 7. Place the covered pan inside a larger roasting pan. Carefully pour the hot water into the outer pan until it reaches about halfway up the sides of the flan pan, creating a water bath. 8. Bake for 45 to 55 minutes, until the edges are set and the center jiggles only slightly, and a knife inserted near the center comes out clean. 9. Carefully remove the flan pan from the water bath. Let it cool at room temperature, still covered, for about 30 minutes.

Transfer the flan, still covered, to the refrigerator. Chill for at least 4 hours, or up to overnight, until fully set and cold. 11. To unmold, run a thin knife around the edge of the pan. Place a rimmed serving plate upside down over the pan, then invert both together in one motion so the flan releases onto the plate with the caramel sauce pooling around it.