Preheat oven to 325.
Place the 1 cup sugar and 2 Tbsp water in a saucepan and bring to a boil until sugar dissolves. Reduce heat and stir until syrup becomes a light caramel color.
Pour into baking pan, and spread evenly across the bottom.
Blend the remainder of ingredients until smooth in a blender.
Pour mixture into baking pan and cover with aluminum foil. Set pan in a larger baking pan and add warm water to about 3/4 inch.
Bake for about 60 minutes or until flan appears firm. (Flan will continue to cook after removing from oven)
Let Cool. Run a knife around edge of pan. Place serving plate over flan baking dish and invert quickly.
