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In a medium saucepan, combine sugar and water. Stir gently to combine.
Cook over medium heat without stirring until the sugar dissolves and starts to turn golden brown (about 4-5 minutes).
Carefully add the heavy cream (mixture will bubble vigorously). Stir until smooth.
Remove from heat and stir in vanilla extract if using.
Let cool slightly before using or storing.
Serving and Storage Tips
Use immediately as a topping for ice cream, cakes, or pancakes.
Store leftover caramel in an airtight container in the fridge for up to 1 week. Reheat gently before using.
Variations
Add a pinch of sea salt for salted caramel.
Stir in a tablespoon of bourbon or rum for a boozy twist.
FAQ
Q: Can I use milk instead of heavy cream?
A: Heavy cream works best for the creamy texture, but whole milk can be used for a lighter version.
Q: How do I prevent caramel from burning?
A: Watch closely as it cooks, and remove from heat as soon as it turns amber.
Q: Can I double the recipe?
A: Yes, just use a larger pan and adjust cooking time slightly.
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