In a medium saucepan, combine granulated sugar and water over medium heat. Without stirring, allow the sugar to dissolve and cook until amber, about 8–10 minutes. Pour caramel into a flan mold.

In a large mixing bowl, whisk together evaporated milk, sweetened condensed milk, eggs, and vanilla extract until smooth. Strain through a fine-mesh sieve for a silky texture.

Pour the custard mixture over the cooled caramel. Preheat oven to 350°F (175°C). Place flan mold in a baking dish filled with hot water and bake for 50–60 minutes.

Cool flan in the mold for about 30 minutes. Refrigerate for at least 4 hours. To unmold, loosen edges with a knife and invert onto a serving plate.