Place a saucepan on the stove over medium-low heat.

Pour ¼ cup of sugar and 2 tbsp of water into the pot and let the sugar dissolve naturally.

Remove the pot from the heat as soon as it turns amber color.

Pour the caramel into an 8x4-inch pan. Tilt the pan from side to side to coat the bottom evenly with the caramel.

Grab a mixing bowl and add 1 cup of cream cheese to it. Use a whisk to beat the cream cheese until it’s smooth and creamy.

Crack 1 large-sized whole egg into the cream cheese.

Separate the egg yolks from 4 large-sized eggs and add them to the cream cheese mixture.

Whisk the mixture thoroughly until there are no lumps.

Pour ½ cup of condensed milk and 1.5 cups of evaporated milk into the mix.

Add 2 tsp of vanilla essence and ⅛ tsp of salt over the cream cheese.

Whisk again until all the ingredients are well combined.

Place a sieve over the pan containing the caramel.

Pour the cream cheese mixture through the sieve to remove any lumps.

Place the pan in a larger tray and cover the top of the pan tightly with aluminum foil.

Pour hot water into the tray, filling it until it reaches ⅔ of the way up to the side of the pan.

Preheat the oven to 350 degrees Fahrenheit or 180 degrees Celsius and bake for about 50-60 minutes.

Once baked, remove the pudding from the water bath and let it completely cool to room temperature.

Refrigerate the cream cheese flan overnight or at least for 4 hours.

Remove the foil and run a knife around the edges of the pan to loosen the flan to unmold it.

Place a large tray over the pan and flip it outside down. Carefully lift the pan to reveal the caramel top of the cream cheese pudding.

Slice the caramelized cheese flan into desired portions and serve it chilled.