In a medium saucepan, add sugar and heat over medium heat without stirring until it turns a deep amber color, about 6-8 minutes. Pour the melted caramel into an ungreased loaf pan, swirling to coat the bottom.

In a large mixing bowl, whisk together sweetened condensed milk, coconut milk, eggs, vanilla extract, and shredded coconut until smooth.

Pour the coconut flan mixture over the caramel slowly to avoid splashing, using a rubber spatula to ensure even distribution.

Preheat your oven to 350°F (180°C). Place the loaf pan in a larger baking dish filled with hot water and bake for 50-55 minutes or until set.

Once baked, cool to room temperature for about 30 minutes, then refrigerate for at least 3 hours or overnight.

To serve, fill a shallow dish with warm water and immerse the loaf pan briefly. Run a knife around the edges, then invert onto a serving plate, garnishing with extra shredded coconut.