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Heat balsamic vinegar in a small pot or saucepan over medium heat. *If adding sugar, combine both into the pot and heat together.
Bring to a gentle boil, then reduce heat to medium-low heat and let simmer, stirring occasionally, until the vinegar thickens and is reduced to about 1/2 cup (about 20 minutes). It should be thick enough to coat the back of a spoon.*If simmering with sugar, it will take about 8-10 minutes to reduce.
Remove from heat and allow to cool completely before serving (about 15 minutes).