To caramelize sugar, in a small heavy skillet cook the ⅓ cup sugar over medium-high heat until sugar begins to melt, shaking skillet occasionally to heat sugar evenly. Do not stir. Reduce heat to low and cook about 3 minutes more or until all of the sugar is melted and golden.
Quickly pour caramelized sugar into an 8×1½-inch round baking pan, tilting pan to coat bottom (use a pot holder if pan becomes too hot).
In a mixing bowl beat eggs. Stir in LACTAID® Reduced Fat Milk, ¼ cup sugar, vanilla, and salt. Pour into sugar-coated pan.
Set the round pan in a large baking pan set on an oven rack. Pour hot water into the large baking pan around the round pan to a depth of 1 inch.
Bake, uncovered, in a 325 degree F oven about 30 minutes or until a knife inserted near the center of the custard comes out clean. Carefully remove from pan of water. Cool completely in pan on a wire rack. Cover and chill for 4 to 8 hours or until thoroughly chilled.
To serve, loosen flan from side of pan. Carefully invert onto a serving plate. Cut into wedges. If desired, garnish with edible flowers.