In a medium saucepan over medium heat, add sugar and let it melt without stirring, watching closely for an amber color to develop, about 8-10 minutes. Once golden, carefully pour the caramel into an ungreased loaf pan, tilting to coat the bottom evenly. Allow it to cool and harden while you prepare the flan mixture.

In a large mixing bowl, whisk together the sweetened condensed milk, coconut milk, eggs, vanilla extract, and unsweetened shredded coconut until smooth and well combined, about 2-3 minutes. Set this aside for the next step.

Pour the smooth flan mixture over the chilled caramel layer in the loaf pan, being careful not to disturb the caramel.

Preheat your oven to 350°F (180°C). Place the loaf pan into a larger baking dish, creating a water bath. Bake for 50-55 minutes, or until the top is lightly golden and firm.

Once baked, remove the loaf pan from the water bath and let it cool at room temperature for about 30 minutes. After it cools, cover the pan with plastic wrap and refrigerate for at least 3 hours or until fully set.

When ready to serve, fill a shallow dish with warm water and place the loaf pan in it for a few minutes. Run a knife gently around the edges and invert a serving platter on top to unmold.