Step 1

Add sugar into the pan and cook it on low flame. Keep stirring.

Step 2

After few minutes it will begin to melt and start turning brown.

Step 3

Once the sugar melts and turns completely brown add butter.

Step 4

When butter melts and mixes well, add warm milk and essence. Mix.

Step 5

At this stage few lumps of caramel will be formed. Don't get panic. Keep cooking and stirring on low flame.

Step 6

Cook until it becomes uniform and slightly thick.

Step 7

Switch off the heat and let it turn cool completely.

Step 8

Caramel sauce is ready. Keep it in refrigerator.