First, mix the sugar and water in a saucepan. Then, place it over medium heat and let it boil until it turns golden and thickens. After that, pour the caramel sauce into a glass dish and set it aside.
Flan
Next, in a blender, mix the condensed milk, milk, cornstarch, heavy cream, and vanilla extract until smooth. Then, pour this mixture over the caramel sauce in the glass dish. Afterward, bake it in a preheated oven at 356 °F (180 °C) for about 40 minutes, or until the flan is set.
Cream
While the flan is baking, beat the heavy cream until it reaches a firm consistency. Then, refrigerate it to chill.
Assembly
Once the flan has completely cooled, carefully remove it from the dish. Then, spread the whipped cream over the top. Finally, refrigerate for at least 3 hours before serving.
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