First Step: Preheat the oven to 350°F and grease a 12-cup muffin tin to ensure your caramel flan muffins release easily after baking, taking about 5 minutes for this initial setup.

Second Step: Combine 1/2 cup granulated sugar and 2 tablespoons water in a heavy saucepan over medium heat, cooking without stirring until the mixture turns amber colored, which takes about 8-10 minutes; once done, carefully whisk in 2 tablespoons heavy cream to create the caramel layer for your flan muffins.

Third Step: Divide the caramel evenly among the greased muffin cups, letting it cool slightly for a minute or two to form a solid base for the creamy caramel flan muffins.

Fourth Step: In a large bowl, whisk together the dry ingredients 1 1/2 cups all-purpose flour, 1/2 cup granulated sugar, 2 teaspoons baking powder, and 1/2 teaspoon salt then in another bowl, combine the wet ingredients: 1/3 cup melted butter, 1/2 cup whole milk, 2 large eggs, and 1 teaspoon vanilla extract, and mix them into the dry ingredients just until combined to avoid tough flan muffins.

Fifth Step: Divide the muffin batter over the caramel in each muffin cup, filling them about 1/3 full, and for dietary adaptations, use gluten-free flour here if needed to keep the recipe flexible.

Sixth Step: Whisk together 3 large eggs, 1/2 cup sweetened condensed milk, 1/4 cup whole milk, 1 teaspoon vanilla extract, and a pinch of salt until smooth to create the custard for your caramel flan muffins with smooth texture.

Seventh Step: Pour the custard mixture over the batter in each cup, filling to about 2/3 full, then bake for 20-25 minutes or until the custard sets and the muffins turn golden brown, checking at the 20-minute mark for doneness.

Final Step: Cool the muffins in the pan for 10 minutes, then run a knife around the edges and invert them onto a serving plate for easy removal, allowing the flavors to settle before enjoying your creamy caramel flan muffins, which can be served warm or chilled based on preference. For more on perfecting caramel, check out this caramel-making guide from experts. (Word count: 650)