Cook 1 cup sugar in a medium-size saucepan over medium heat, stirring constantly, 5 mins. or until sugar melts and turns a golden brown.
Quickly pour hot carmelized sugar into a 2 qt. flan dish.
Using oven mitts, tilt dish to evenly coat bottom and sides. Let stand 5 minutes. Sugar will harden.
Whisk together egg yolks and next 5 ingredients in a large bowl.
Process egg whites, cream cheese, and remaining 1/2 cup sugar in blender until smooth.
Stir egg white mixture into egg yolk mixture.
Pour mixture through a wire mesh strainer into a large bowl; pour custard over camalized sugar.
Place dish in a large shallow pan. Add hot water to pan to a depth of 1/3 up sides of dish.
Bake @ 350 degrees for 1 hr. 45 mins.
Remove dish from water bath.
Cool completely on a wire rack.
Cover and chill at least 3 hours.
Run a knife around the edge of flan dish to loosen; invert onto a serving plate.