Cook 1 cup sugar and water in saucepan on medium heat 8 min. or until mixture is golden brown and has syrup-like consistency, carefully swirling pan every few minutes. (Do not stir.)
Pour into 9-inch round pan.
Blend milk, cream cheese, eggs, vanilla and remaining sugar in blender until smooth.
Pour over syrup in pan; cover with foil.
Add 1 qt. (4 cups) water to Dutch oven or large saucepan; place vegetable steamer inside.
Place flan on steamer; cover pan with lid.
Cook on high heat 5 min. (Water should be boiling.) Simmer on medium-low heat 45 to 50 min. or until knife inserted in center of flan comes out clean.
Transfer flan to wire rack; cool completely. Refrigerate 4 hours.
