Prepare the caramel by combining granulated sugar and water in a saucepan until moistened. Heat until deep amber, then pour into a flan mold and cool.

Preheat the oven to 350°F (175°C) to ensure even baking.

Mix together evaporated milk, sweetened condensed milk, eggs, and vanilla extract in a bowl until smooth. Strain if desired.

Pour the custard mixture over the cooled caramel in the mold.

Prepare a water bath by placing the mold in a baking dish filled with hot water halfway up the sides.

Bake the flan for 50-60 minutes until set with a slight jiggle in the center.

Let the flan cool in the water bath for about 30 minutes, then refrigerate for at least 4 hours.

Run a knife around the edges, invert onto a plate, and serve chilled.