In a small saucepan stir your sugar and water over medium heat until combined. Bring to a boil and keep your eye on it.
Swirl the saucepan occasionally and keep cooking the caramel until it is a amber caramel colour. Once it reaches this stage remove the saucepan from the heat.
Pour your caramel into your ramekins until the base is evenly coated. Set aside.
Preheat your oven to 420°F.
In a separate bowl, combine your eggs, sugar and vanilla. Whisk until just combined.
Add your milk and whisk together. Do not whisk too much as this will create bubbles in your custard.
Pour your custard through a sieve to remove the lumps and then pour the custard into your ramekins until they are filled. Leave about a 1/2" of space from the top.
Place your ramekins in a tray and fill the tray halfway with hot water. Place the tray carefully into the oven.
Bake at 420°F for 45 minutes or until set.
Take the tray out of the oven and let the custards sit for 15 minutes. After 15 minutes remove from the tray and let the custards set at room temperature.
Cover with cling film and place in your refrigerator for 4 hours minimum. Overnight is best!
To serve, run a knife around the edges and put a plate on top of the ramekin. Invert the dish and give it one hard shake. The caramel flan should slide right out. Enjoy!
