1. Cook 1 cup sugar in a 9-inch round cake pan over medium heat, stirring occasionally, 5 minutes or until sugar melts and turns golden brown. Remove pan from heat, and let stand 5 minutes. (Sugar will harden.)
2. Meanwhile, whisk together egg yolks and next 5 ingredients in a large bowl.
3. Process egg whites, cream cheese, and remaining 1/2 cup sugar in a blender until smooth. Add 2 cups egg yolk mixture, and process until smooth. Stir egg white mixture into remaining egg yolk mixture until blended. Pour custard over caramelized sugar in pan.
4. Place cake pan in a large shallow pan. Add hot water to large pan to depth of one-third up sides of cake pan.
5. Bake at 350° for 50 to 60 minutes or until a knife inserted into center of flan comes out clean. Remove pan from water; cool completely on a wire rack (about 2 hours). Cover and chill 4 hours to 2 days.
6. Run a knife around edge of flan to loosen; invert onto a serving plate. (Once inverted, the flan will take about 30 seconds to slip from the pan. Be sure to use a serving plate with a lip to catch the extra caramel sauce.)