Add the sugar to a small saucepan and heat over medium heat. Stir occasionally until the sugar melts and turns a rich golden brown. You can add a splash of water if desired, but it isn’t necessary. (I find it only slows the process.)
When the caramel turns medium brown, carefully pour it into your pan or custard cups, tilting to coat the bottom and sides. Set aside and allow the caramel coating to harden.
Make the custard
In a medium saucepan, combine the milk, cream, coconut milk, and honey. Warm gently over low to medium heat, stirring until the honey is fully dissolved. Stir in the coconut butter until melted and smooth, then mix in the vanilla extract.
Remove the mixture from the heat. Whisk the eggs in a separate bowl, then slowly pour in the warm milk mixture while stirring gently to combine. Avoid whisking too vigorously. (You don’t want to create bubbles.)
Make the bain-marie (water bath)
Pour the custard mixture into the prepared caramel-coated mold (or ramekins). Place the mold inside a larger baking dish and carefully pour hot water into the outer dish until it reaches about halfway up the sides of the mold. This water bath helps the custard cook evenly and stay creamy.
Bake the flan
Bake for about 40 minutes. Then, begin checking for doneness. The edges should be set while the center still jiggles slightly. To test, insert a toothpick or knife into the center; it should come out mostly clean with a bit of creamy custard on it.
Cool and refrigerate
Carefully remove the flan from the water bath right after baking so it doesn’t continue cooking. Let it cool on a cooling rack, then refrigerate for at least 4 hours or overnight. The flavor and texture improve after chilling.
Unmold and serve
Run a knife around the edges of the flan to loosen it. Place a plate over the mold, flip carefully, and let the caramel sauce flow over the top.
Slice and enjoy!
Notes
Pan choices: You can bake this flan in a round pan, loaf pan, or individual custard cups. A round pan gives a thinner flan with more caramel per bite, while a loaf pan makes thicker slices. Individual ramekins look elegant and bake faster.
Caramel tips: If the caramel forms a thick layer, it may not fully dissolve right away but will soften after refrigeration. To unmold easily, use a thinner caramel layer.
Sweetness: The caramel continues to sweeten the flan as it rests, so it’s best to keep the custard itself only lightly sweetened.
Avoiding bubbles: Stir gently when mixing and always bake in a water bath to prevent the custard from curdling or forming bubbles.
Cooling tip: Remove the flan from the water bath right away so it stops cooking. Leaving it in the hot water can make the edges overcooked or slightly grainy.
Make ahead: Flan keeps well in the fridge for up to 3–4 days and often tastes even better the next day once the caramel soaks in.