Cook 1 cup sugar in small saucepan on medium heat until melted and deep golden brown, stirring constantly. Immediately pour into 9-inch round pan; tilt pan to evenly cover bottom of pan.
Blend milk and cream cheese in blender until smooth.
Add remaining sugar, eggs, coconut and rum extract; blend until smooth.
Pour over syrup in pan; place 9-inch pan in large shallow pan.
Add enough hot water to large pan to come halfway up side of 9-inch pan.
Bake 50 min. to 1 hour or until knife inserted near center of flan comes out clean. Cool. Carefully remove flan from water. Refrigerate 4 hours. When ready to serve, unmold flan onto plate.