In a medium-sized pot, combine granulated sugar, salt, and cold water. Stir just enough to dissolve the sugar. You want to avoid stirring too much as it can cause crystallization.
Place the pot over medium-high heat. Watch as the mixture begins to bubble. This is where the sugar starts to melt and caramelize. Keep an eye on it, as it can go from perfect to burnt quickly.
As the mixture bubbles, prepare your heavy cream by measuring it into a cup. Add the cold unsalted butter to the cream and set it aside. We’ll need this once the caramel is ready.
After a few minutes, lower the heat to medium-low once the caramel reaches a light golden color. Allow it to gently bubble for about three minutes, watching it develop its color.
If you prefer a more intense caramel flavor, allow it to cook until it reaches a deeper amber color. Just be cautious not to overcook it!
Once you’re happy with the color, remove the pot from heat. Carefully pour in the heavy cream mixture with the butter. Be prepared for splattering, so keep your distance!
Once the splattering settles down, return the pot to medium-low heat. Stir the mixture continuously for about thirty seconds until it becomes smooth and velvety. You’re almost there!
Turn off the heat and add the vanilla extract. Mix well to incorporate it into the caramel.
Pour the finished sauce into a glass container. Leave it uncovered while it cools down; it will thicken as it sits.
Enjoy your Homemade Caramel Sauce warm or cold! You can store any leftovers in the refrigerator for up to one month. To reheat, just pop it in the microwave for a few seconds.