Make sure you read the cooking notes before you start.

Pre-heat your oven to 350°F (180°C) with a rack in the middle. Prepare an un-greased loaf pan within arm reach.

Step 1 – Make the caramel. Place the sugar in a small saucepan over medium-heat. Do not touch the sugar anymore – no stirring; but you can occasionally shake the pan. Let the sugar melt, bubble and turn a golden color. Watch it carefully and when the caramel turns amber, immediately remove from the heat and pour the caramel evenly over the bottom of the pan. Set aside to cool and harden.

Step 2 – In a large mixing bowl, whisk together the condensed milk, coconut milk, eggs, vanilla extract and shredded coconut. Pour the mixture in the loaf pan (over top of the caramel).

Step 3 – Place the loaf pan into a larger dish, and fill the larger baking dish with water at least 1/4 up the sides of the loaf pan. Cook for 50-55 minutes, until the top crust is lightly golden and firm to the touch. Transfer the flan to a cooling rack and let cool to room temperature. Transfer into the fridge and chill for at least 3 hours.

Step 4 – When chilled, place the pan in about 2 inches of fairly warm water, so the caramel at the bottom of the pan softens again. Run a knife around the edges of the pan. Invert a plate over the pan, hold tightly and quickly turn over.

Sprinkle with shredded coconut before serving.