Step 1: Prepare Your Ingredients
Before you begin cooking, measure out all your ingredients and have them ready beside the stove. Cut the butter into tablespoon-sized pieces and let the heavy cream come to room temperature, or warm it slightly in the microwave for 15-20 seconds. This preparation is crucial because once you start cooking, things happen quickly.

Step 2: Melt the Sugar
Heat the granulated sugar in a heavy-bottomed saucepan over medium heat. Using a heat-resistant spatula or wooden spoon, stir constantly as the sugar begins to melt. It will first clump up and look lumpy—this is completely normal. Continue stirring, breaking up any clumps. The sugar will gradually liquefy, turning from white to clear, then taking on an amber color.

Step 3: Cook to Deep Amber
Continue cooking and stirring until all the sugar is melted and turns a deep amber color, similar to the color of an old penny or dark honey. This should take about 5-7 minutes total. Watch carefully during this stage, as the sugar can go from perfect to burned very quickly. Remove from heat as soon as you reach the desired color—the residual heat will continue cooking it slightly.

Step 4: Add the Butter
Immediately add the butter pieces all at once. Be careful—the caramel will bubble up vigorously when you add the butter. Whisk until the butter is completely melted and incorporated. The mixture will look separated and grainy at this point, but don’t worry.

Step 5: Add the Cream
Slowly drizzle in the heavy cream while whisking constantly. The mixture will bubble up dramatically again—this is why you need a larger saucepan than you think. Continue whisking until the cream is fully incorporated and the mixture is smooth. If you notice any hardened bits of sugar, return the pan to low heat for 30-60 seconds while whisking to dissolve them.

Step 6: Add Salt and Vanilla
Remove from heat and whisk in the salt (start with ¼ teaspoon and add more to taste). If using vanilla extract, add it now and whisk to combine. The caramel will be quite thin when hot but will thicken considerably as it cools.

Step 7: Cool and Store
Allow the caramel sauce to cool in the pan for a few minutes, then transfer to a heat-safe jar or container. Let it cool to room temperature, where it will thicken to a perfect drizzling consistency. Use immediately or store covered in the refrigerator.