Preheat oven to 325F. Place four small ramekins in a baking dish. Set aside.

In a small saucepan, stir sugar and water together and cook over high heat until sugar turns a light golden brown. Pour caramel into ramekins and coat the bottoms.

In a medium bowl, whisk together the milk, cream, eggs, melted guava paste, vanilla, and salt. Strain and pour into ramekins.

Add hot water to the baking dish (bain marie) and place in oven for 35-40 minutes, until flan sets. Chill overnight and to unmold place halfway in hot water. Slide a thin knife around and flip over on serving plate. Enjoy!