In a small, heavy saucepan over medium-low heat, heat sugar, stirring, until melted and golden. Pour into a round 25cm baking dish, tilting to coat the bottom and sides with caramel. Set aside.
In a large bowl, beat cream cheese until smooth. Add eggs, one at a time, beating until well incorporated. Add condensed and evaporated milk and vanilla, beating until smooth. Pour into caramel-coated dish. Line a roasting pan with a damp tea towel. Place baking dish on tea towel, inside roasting pan, and place roasting pan on oven rack. Fill roasting pan with enough boiling water to come halfway up the sides of the baking dish.
Bake for 50 to 60 minutes, until centre of flan is just set. Cool for 1 hour on a wire rack, then chill in refrigerator for 8 hours or overnight. To unmould, run a knife around edges of pan and invert on a rimmed serving platter.