Measure everything before starting because caramel cooks quickly. Keep the butter and cream nearby. This makes the cooking process easier and prevents delays while the sugar is hot.

Place sugar and water in a heavy-bottomed saucepan. Heat over medium heat without stirring constantly. Let the sugar melt slowly until it becomes golden amber and smells lightly toasted.

Once the sugar starts changing color, watch it closely. Caramel can burn quickly. Gently swirl the pan when needed. Aim for a deep golden color without letting the sugar become very dark.

Remove the pan briefly from the heat. Add butter carefully because the mixture will bubble strongly. Stir with a wooden spoon until the butter melts completely into the caramel.

Slowly pour in the heavy cream while stirring continuously. The sauce will bubble and rise. Keep stirring until everything becomes smooth, creamy and well combined.

Return the saucepan to low heat if needed. Add vanilla extract and salt. Stir gently for another minute. The sauce should look glossy and slightly thick.

Remove the sauce from the heat and let it rest for two minutes. It will thicken as it cools. Serve it warm while it remains smooth and pourable.