Sweetened condensed milk and canned coconut milk make this flan extra rich and velvety smooth. Chill the flan overnight for a handy make-ahead recipe.
Heat oven to 325°F.
Place sugar in a medium-size heavy-bottomed saucepan and pour 1/3 cup water over it. Stir to dissolve. Bring to a boil over medium-high heat. Cook, without stirring, for about 10 minutes until amber colored. Pour into a 9-inch glass pie plate; swirl to coat bottom.
Blend condensed and coconut milks, eggs, vanilla and coconut extracts in a blender. Pour into prepared pie plate.
Place pie plate in large roasting pan. Add enough hot water to come halfway up side of plate. Bake at 325°F for 45 minutes, until custard is just set. Transfer to wire rack; let cool. Refrigerate until completely chilled, 4 hours or overnight.
To serve, run a sharp knife around edge of custard. Invert onto a large plate, letting caramel run over top. Garnish with coconut.