Position rack in center of oven and preheat to 350 degrees F.
Arrange 8 (6-ounce) oven-safe custard or dessert cups in a large roasting pan. Stir sugar and water in a small saucepan over low heat until sugar dissolves. Increase heat to high and boil without stirring until liquid is a deep golden brown, brushing down sides of saucepan with a wet pastry brush to prevent sugar from crystallizing, about 12 minutes. Quickly pour syrup into prepared cups.
In a blender, combine condensed milk, cream cheese, eggs, and vanilla. Blend until smooth, about 30 seconds. Transfer to an 8-cup measuring cup or large bowl. Whisk in evaporated milk. Divide custard equally among prepared cups. Transfer roasting pan to oven. Pour enough water into roasting pan to come halfway up the sides of the custard cups.
Bake until sides are firmly set and only the very center of custards jiggle slightly when cups are gently shaken, about 45 minutes (custards will firm up as they cool). Remove cups from pan, cover tightly with aluminum foil, and refrigerate until cold, at least 4 hours and up to 24 hours. Run small sharp knife around sides of custards. Invert each cup onto a dessert plate, shaking gently to release custard from cups. Drizzle caramel sauce over custard. Serve cold.
Recipe courtesy of Sandra Lee