Preheat oven to 350°F.

In a small pan, combine sugar and water, and boil rapidly until a light golden color.

Pour sugar into the pan of your choice, A pie pan will do. Coat the bottom and sides. Let cool.

In a blender, mix condensed milk, eggs & milk together. Add the Vanilla. Mix on low for a few seconds, pour mixture into the caramelized sugar-coated pie dish.

Place dish in large roasting pan or baking pan. Add enough hot water to come halfway up sides of pie dish. The flan shouldn't float. Bake flan in water bath for 90 minutes. Let cool, then cover and chill overnight.

To serve: Run a rubber spatula around the edges to loosen. Place a serving plate that's a little bigger than the pie pan on top of the pie pan, and flip upside down. Gently remove the pie pan and cut the flan into sliced portions to serve or slice and serve from the pie pan.