Combine the sugar and water in a heavy saucepan over low heat and cook until the sugar has caramelized to a rich golden brown. Pour the caramel into heat proof flan or pudding cups. Set aside to cool.
Combine milk, heavy cream, coconut and cinnamon stick in a saucepan and simmer gently for 30 minutes. Remove the cinnamon stick and cool for 15 minutes. Stir in the coconut milk. Beat the egg yolks in a bowl, temper the eggs by whisking in 1/2 cup of hot milk, then whisk in the remainder of the milk mixture. Pour the coconut mixture into a large heat proof measuring cup.
Put the flan dishes into a baking pan. Place the baking pan on the middle rack of the oven and fill the flan dishes with the coconut mixture. Pour warm water into the baking pan to create a water bath. Do not get water into the flans. Bake the flan for 45 to 50 minutes. Cool completely and refrigerate for 6 to 8 hours or overnight. To serve run a sharp knife around the outside of the flan dish to loosen. Invert the dish on a plate and pop out flan. Garnish with toasted coconut, grated lemon zest and fresh blackberries.