Step 1

In a medium saucepan, add the sugar and ½ cup water. Heat over medium heat until it begins to simmer, swirrling the pan occasionally by gently lifting and turning in a circular motion.

Step 2

Once the sugar is completely dissolved, reduce heat slightly, if needed, to keep it at a simmer, continuing to swirl occasionally. Continue to simmer for approximately 10-14 minutes until a light golden amber color appears. If you are simmering top low, it will take around 16 minutes - just watch the color (and keep in mind the pan may influence how the color appears, too).

Step 3

After approximately 10 minutes or so, heat the remaining water in the microwave. Using hot water for the next step will reduce splatters.

Step 4

Once the light golden color appears, remove the saucepan from the heat. Wearing oven mitts, carefully whisk in the remaining (hot) water into the caramel syrup; it will splatter so be careful. If any syrup hardens, continue whisking and return to heat if needed until dissolved. Stir in the vanilla extract.

Step 5

Allow to cool before transferring to an airtight container. You can use it immediately if needed, but it will heat up iced beverages so mix it with milk or espresso first, before the ice. Store in the fridge for up to 2 weeks and use in your favorite beverages or recipes as desired. Enjoy!