Step 1) Melt the Sugar: Start by adding the sugar and water to your saucepan over medium heat. Next, stir gently at first to help the sugar dissolve. Once it has dissolved, stop stirring.Just let it bubble and turn amber. Stirring after this point can make it crystallize. You want to watch it like a hawk. The reason is sugar goes from golden to burnt in seconds if you're not careful. Step 2) Add Butter and Cream: Once the sugar turns that deep, golden brown (caramel!), carefully drop in the butter. It’ll bubble like crazy that’s normal. Then slowly pour in the cream or milk, stirring constantly. This is the part where I used to get nervous, but as long as you go slow and keep stirring, it’ll smooth out into a glossy caramel.
Step 3) Add Vanilla & Salt: Take it off the heat and add your vanilla extract and salt. You want to add these at the end, which prevents the vanilla from burning off and allows that pinch of salt to mellow the sweetness.
Step 4) Cool & Store: Let it cool in the pan for a few minutes so it thickens slightly. Then pour it into a clean glass jar or a squeeze bottle (those diner-style bottles are perfect). Once it’s completely cool, pop it in the fridge. It’ll thicken as it chills, and you can warm it slightly before using if needed.