Preheat the oven to 350°F (175°C) and position a rack in the center.

In a small saucepan, combine the sugar and water. Stir until dissolved, then let it simmer without stirring until it reaches a deep golden color.

Quickly pour and tilt a round cake pan to coat the bottom with the caramel.

In a blender, combine the softened cream cheese, sweetened condensed milk, evaporated milk, eggs, and vanilla. Blend until completely smooth.

Pour the cream mixture gently over the caramel in the cake pan and tap the pan to settle any bubbles.

Place the cake pan inside a larger baking dish and pour in hot water until it comes halfway up the sides of the cake pan to create a water bath.

Bake for 50–60 minutes. Check at 50 minutes; the center should jiggle slightly, while the edges will look set.

Remove from the oven and let cool on a rack for about 30–60 minutes, then refrigerate for at least 4 hours or overnight.

Run a thin knife around the edges, invert onto a plate, and lift away the pan.

Enjoy immediately or top with various garnishes like fresh berries or toasted coconut.