In a medium saucepan, add sugar and melt over medium heat, avoiding stirring to achieve an even caramel color.

Watch for the sugar to transform into a beautiful amber hue, roughly 8–10 minutes.

Once ready, swiftly pour it into an ungreased loaf pan to form a glossy layer.

Set aside to cool and harden while you prepare the flan mixture.

In a large mixing bowl, whisk together sweetened condensed milk, coconut milk, eggs, vanilla extract, and unsweetened shredded coconut until well combined and smooth.

Carefully pour the flan mixture over the caramel layer in the loaf pan.

Preheat your oven to 350°F (180°C).

Place the loaf pan inside a larger baking dish and fill it with hot water until it's about ¼ up the sides.

Bake for 50–55 minutes, until the top is golden brown and the flan is firm but slightly jiggly in the center.

After baking, allow the flan to cool to room temperature, which takes about 30 minutes.

Cover it and refrigerate for at least 3 hours, or overnight to set.

To remove the flan, place the loaf pan in warm water for about 5 minutes.

Run a knife around the edges to loosen it, then quickly invert onto a serving plate.

Sprinkle additional shredded coconut on top before serving.

Serve chilled and enjoy!