Make the caramel by combining sugar and water in a saucepan. Apply heat. Continue cooking while stirring until the mixture thickens and the color turns medium brown. This is now the caramel.
Pour the caramel into separate molds. (Note: you may use glass, metal, or ceramic baking pans as molds for the flan. Using ramekins is also a good idea.) Tilt the mold to spread caramel evenly. Set aside.
Start making the flan by cracking the eggs into the bowl. Beat using a wire whisk. Gradually add sugar. Continue beating until mixture gets well blended. Set aside.
Microwave ¼ cup the water for 35 seconds. Combine powdered gelatin and water. Mix well by stirring. Set aside.
Pour milk into a pan. Apply heat until it goes into a simmer. (Note: do not apply too much heat. We want the milk to only be below boiling point).
Scoop around 5 to 6 tablespoons of warm milk (1 tablespoon at a time) into the bowl with sugar and eggs. Continue to stir the mixture. (Note: This process is also known as tempering. Two ingredients with different temperatures are gradually combined in order to slowly rise to the same temp.)
Pour the mixture from the bowl into the pan. Continue stirring until well blended.
Gradually add gelatin mixture while stirring. Continue cooking in low heat for 1 minute. Turn off heat.
Transfer mixture back to the bowl. Add all-purpose cream and vanilla extract. Stir until well blended. Remove bubbles by skimming.
Pour the flan mixture into the molds. Cover each mold with aluminum foil or plastic wrap. Refrigerate overnight.
Serve for dessert. Share and enjoy!