In a medium saucepan, combine sugar and heat over medium until it melts and turns a deep amber color, avoiding stirring to prevent crystallization. Pour the caramel into the bottom of an un-greased loaf pan.

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

Preheat your oven to 350°F (180°C). Pour the flan mixture over the hardened caramel in the loaf pan. Place the loaf pan inside a larger baking dish filled with hot water. Bake for 50-55 minutes.

Remove the loaf pan from the water bath and let it cool to room temperature on a wire rack. Refrigerate for at least 3 hours, preferably overnight.

To release the flan, place the pan in warm water for a few minutes. Run a knife around the edges, then invert onto a serving plate. Garnish with shredded coconut.