Preheat oven to 350°F (175°C). In a saucepan over medium heat, melt sugar until it turns into a golden caramel. Pour immediately into a round 9-inch cake pan, tilting to coat the bottom. Set aside and let it harden.
In a large bowl, beat cream cheese until smooth. Beat in eggs one at a time, mixing well after each. Add sweetened condensed milk, evaporated milk, and vanilla extract. Mix until smooth.
Pour cream cheese mixture over the caramel in the cake pan. Place the filled cake pan into a larger baking dish. Fill the larger dish with hot water to reach halfway up the side of the cake pan.
Bake in preheated oven for 50-60 minutes or until the center is set but still slightly jiggly. Let cool, then refrigerate for at least 4 hours or overnight.
To serve, run a knife around the edge of the pan, and invert flan onto a plate. Slice and enjoy!