In a stainless steel pan, combine the sugar and water and stir to dissolve. Cook until it turns into caramel, stirring occasionally to prevent burning. Be careful, as it can burn quickly. If the caramel has foam on top, it means it's burned and will taste bitter, so you'll need to discard it and start over.

Using 8 aluminum ramekins, carefully coat the bottoms and sides with the hot caramel. Be careful not to burn yourself.

Bake in the oven for 35 minutes. When you gently touch the tops of the flans, they should feel firm and not stick to your fingers.

Invert each ramekin onto a small plate. Use the knife to make a small hole in the top of the aluminum ramekin to let air in so the flan and caramel release onto the plate.