We present the method of direct van der Waals simulation (DVS) to study computationally flows with liquid-vapor phase transformations. Our approach is based on a discretization of the Navier-Stokes-Korteweg equations, which couple flow dynamics with van der Waals' nonequilibrium thermodynamic theory of phase transformations, and opens an opportunity for first-principles simulation of a wide range of boiling and cavitating flows. The proposed algorithm enables unprecedented simulations of the Navier-Stokes-Korteweg equations involving cavitating flows at strongly under-critical conditions and 𝒪(105) Reynolds number. The proposed technique provides a pathway for a fundamental understanding of phase-transforming flows with multiple applications in science, engineering, and medicine.