Preheat your oven to 350°F (180°C) with a rack positioned in the middle. Prepare an ungreased loaf pan and set it aside.
Step 1 – Make the Caramel:
Place the sugar in a small saucepan over medium heat. Allow the sugar to melt and caramelize without stirring—only occasionally shake the pan to ensure even melting. Watch the caramel closely as it changes color, and once it reaches a golden amber shade, remove it from the heat immediately.
Pour the caramel evenly into the bottom of the loaf pan and set aside to cool and harden.
Step 2 – Prepare the Flan Mixture
In a large mixing bowl, whisk together the sweetened condensed milk, coconut milk, eggs, vanilla extract, and shredded coconut until well combined.
Pour the flan mixture over the hardened caramel in the loaf pan.
Step 3 – Bake the Flan:
Place the loaf pan into a larger baking dish, and fill the larger dish with water until it reaches at least 1/4 up the sides of the loaf pan.
Bake for 50-55 minutes, or until the top of the flan is lightly golden and firm to the touch.
Remove the flan from the oven and allow it to cool to room temperature on a cooling rack. Once cooled, transfer the flan to the refrigerator and chill for at least 3 hours.
Step 4 – Unmold and Serve:
After chilling, place the loaf pan in about 2 inches of warm water to soften the caramel at the bottom.
Run a knife around the edges of the pan to loosen the flan. Invert a plate over the pan, hold firmly, and quickly flip it over to release the flan onto the plate.
Sprinkle with extra shredded coconut before serving.