In a small frying pan, heat the sugar at medium heat until it starts to melt and brown. Stir the sugar periodically so it doesn't burn, and to incorporate all of the sugar crystals into the melted sugar. You can add a splash of water, as called for in most flan recipes, but I haven't found it to really help the process. I find it just ends up making it take longer because it doesn't really start to melt until all of the water has evaporated anyway.
At first, the sugar will turn into a light brown liquid. Let it cook for a little while longer until it gets to be a medium brown color. Immediately (and carefully! melted sugar burns!) pour the melted sugar into the bottom of your pan or custard cups, moving the pan in circular movements to try to coat the entire bottom of the pan.
In a saucepan heat the milk, cream, coconut milk, and honey over low to medium heat, mixing continuously until the honey is completely incorporated into the milks. I don't like things to be too sweet so I don't use much honey. If you don't have honey or don't want to use it, you could use around a half cup of sugar instead. (Add more than that if you like things on the sweeter side.)
Once all of the honey has dissolved, add a half cup of coconut butter. Then remove the pan from the heat, and gently mix in the eggs.
Move the prepared pan or custard cups into another, larger pan. You will be using the other pan like a double boiler. Fill the prepared pan with your custard mixture, and fill the larger pan with water. You don't need to add so much water that your flan pan is floating, and you should also be careful not to add so much that you can't safely carry the pans (especially when they are hot later on).
Put the pans in your preheated oven, and bake for around 40 minutes. After 40 minutes start checking the flan periodically to see if it is done. Just like you would check on a cake, check the flan with a toothpick. When a custard-like consistency no longer sticks to the toothpick, you are finished. Because of the nature of coconut flan, you may get some small pieces of cooked flan or coconut on the toothpick, but you won't have anything with a pudding-like consistency anymore.
Take the flan out of the oven, and let it cool. Then refrigerate. This dessert can easily be made a day or two in advance and is actually usually better the next day anyway.
Unmold your flan by gently sliding a knife around the edges before gently flipping it over.