Stir the milk and sugar in a small saucepan until the sugar melts.Let it cool. Make sure you don't let the milk boil.
Break the eggs in a bowl and stir them well.
Slowly pour the milk from Step 1 into the bowl from Step 2.
Pour the mix from Step 3 through a strainer. This makes the flan smoother.
Make the caramel sauce in a small saucepan. Put the sugar and the water in the pot and stir quickly over high heat. When it becomes brown, remove from heat and put it into four tea cups. Then pour the mix from Step 4 into the cups over the caramel sauce.
Fill a pot with water and put a steamer on it.Put the cups in the steamer.Put a towel under the lid so that the water won't get into the flan. After 2 to 3 minutes in high heat, lower the heat and steam for 15 minutes.
You can move the lid a little so that some steam will escape.
Poke a hole in the flan with a toothpick, and if juice doesn't come out, it's done. After it cools put it in the fridge.