Melt the Sugar: In a 2-quart stainless steel saucepan (avoid non-stick), combine the sugar and water. Heat over medium-high, stirring gently with a silicone spatula or wooden spoon as the sugar starts to melt.
Stir Until Smooth: Keep stirring—the sugar will clump at first but will gradually melt into a smooth, amber-colored liquid.
Add the Butter: Stir in the butter carefully, as the caramel will bubble up. Continue stirring until fully combined.
Pour in the Cream: Slowly add the heavy cream while stirring. The caramel will bubble rapidly. Once all the cream is in, stop stirring and let it boil for 1 minute.
Cool the Caramel: Remove from heat. It will be thin at first but thickens as it cools.
Store and Reheat: Transfer to a jar or bowl, cover, and refrigerate for up to 1 month. The caramel will solidify in the fridge—reheat in the microwave or on the stove until smooth.
Notes
Use a 2-Quart Saucepan: This size works best for a small batch. A larger pan may cause the sugar to spread too thin and burn.
Watch the Color: Caramel can go from perfect to burnt in seconds, so keep a close eye on it.
Stay at the Stove: It cooks fast—don’t walk away!
Expect Bubbling: The caramel will bubble up when adding butter and cream. This is normal, just be cautious.
Adjust Thickness: If it thickens too much after cooling, gently reheat to loosen.
Let It Cool Slightly: This helps the caramel thicken before using it as a topping.