Heat oven to 350°F. In small saucepan over medium high heat, add sugar and ½ cup water. Bring water to boil, stirring constantly until sugar dissolves. Continue to cook sugar mixture, without stirring, until deep golden brown and caramelized, about 15 minutes. Carefully pour caramel to 8-cup heat-proof mold, quickly swirling to evenly coat bottom before caramel hardens; set aside.

In medium mixing bowl, using hand blender or whisk, beat together cream cheese and eggs until smooth. Whisk in condensed milk and evaporated milk until smooth and combined. Pour cream cheese mixture into prepared mold with caramel; cover tightly with foil. Place mold in larger, deep pan. Pour enough hot (not boiling) water into larger pan, until water comes halfway up sides of flan mold to form bain-marie.

Transfer pan to oven. Bake until flan is set (thin knife inserted into center will come out clean), 40-45 minutes. Remove flan mold from pan; discard foil. Let sit until cool. Transfer flan mold to refrigerator until chilled, at least 2 hours. To unmold, run thin knife around edges of flan. Invert onto serving plate. Cut into 12 pieces.