Step 1

Add sugar to a nonstick heavy-bottomed pan and cook on medium-low heat, constantly stirring with a wooden spoon or silicone spatula until sugar dissolves. The mixture begins to simmer for about 6 to 8 minutes. (Watch carefully as it can burn quickly!).

Step 2

After sugar dissolves completely and syrup is simmering, carefully pour in hot water/lemon mixture. The mixture will bubble and steam (the hot water will help thin the caramel, and the lemon juice will keep the caramel mixture from hardening).

Step 3

Quickly swirl the pan to distribute the hot water/lemon mixture into the pan.  Cook for about 8 to 10 minutes, without stirring, holding the pan's handle, and gently tilting the pan off the heat to distribute color evenly as sugar caramelized, again watching carefully as it can burn quickly!!

Step 4

The mixture should have a golden brown(light amber) color. Turn off the heat and add the vanilla extract. Using a heatproof spatula, stir to combine and transfer the Caramel in an airtight heatproof sterilized jar. Let it cool completely and tightly seal the jar. Store in the refrigerator for up to 1 month.