Make the Caramel

1. Prepare the Caramel: In a medium saucepan, combine the sugar and water. Heat over medium heat, swirling the pan occasionally (do not stir) until the sugar dissolves and turns a deep amber color, about 10 minutes.
2. Pour the Caramel: Carefully pour the hot caramel into a round flan dish or individual ramekins. Swirl the dish to coat the bottom evenly with the caramel, then set it aside to cool while you prepare the flan mixture.

Prepare the Flan

1. Whisk the Flan Mixture: In a large mixing bowl, whisk together the eggs, sweetened condensed milk, coconut milk, vanilla extract, shredded coconut, and a pinch of salt until smooth and fully combined.
2. Strain the Mixture: To ensure the flan is extra smooth, pour the mixture through a fine-mesh sieve into a separate bowl or pitcher.
3. Pour into the Caramel Dish: Carefully pour the flan mixture into the prepared dish over the set caramel.

Bake the Flan

1. Create a Water Bath: Place the flan dish in a larger baking pan. Fill the outer pan with hot water until it reaches halfway up the sides of the flan dish. This will help the flan cook evenly and prevent cracking.
2. Bake: Bake in a preheated 325°F (163°C) oven for 50–60 minutes, or until the flan is set and a knife inserted into the center comes out clean.
3. Cool: Remove the flan from the water bath and let it cool to room temperature, then refrigerate for at least 4 hours or overnight to fully set.

Serve the Flan

1. Unmold the Flan: To release the flan, gently run a knife around the edge of the dish, then invert it onto a serving platter. The caramel will flow over the flan, creating a beautiful sauce.
2. Garnish and Serve: Optionally, garnish with extra shredded coconut or fresh fruit before serving.