In a medium pan, over medium heat, add one cup of sugar and water.
Stir to dissolve sugar. Cook sugar mixture, swirling pot occasionally, until the caramel turns an amber color.
Quickly, pour caramel into round 9-inch pan, being sure to swirl around to coat bottom and bottom sides completely. Allow to cool for ten minutes before adding in flan custard.
In a blender, add in remaining ingredients. Blend well together.
Gently add custard to caramel pan. Place pan in a larger pan for a water bath. Add water to the larger pan until the water reaches half of the level of the flan pan. Gently place in oven.
Cook for 50-60 minutes, or until fork comes out clean. Remove pan from water bath, and allow to cool before refrigerating for 3-4 hours.