Cook sugar in saucepan over medium-high heat, stirring, until dissolved, about 5 minutes. Continue to cook, but do not stir, until sugar caramelizes and becomes a rich, dark brown, about 4 to 5 minutes. Pour into 9-inch cake pan, spreading evenly. Cool.
Set pan in a larger pan so there's at least 1 inch of space around sides of flan pan. Blend evaporated and condensed milks, cream cheese, eggs and vanilla in a blender. Carefully pour into prepared pan. Add about 1/2 inch water to larger pan.
Bake at 350 degrees until center of flan still jiggles a little when pan is shaken, 55 to 60 minutes. Cool, then chill at least 4 hours. Invert it onto servingplate, slice and serve.