Gather all your ingredients before starting. It’s important to work quickly once the sugar starts to melt.

In a medium-sized, heavy-bottomed saucepan, combine the granulated sugar and water. Stir until the sugar is completely moistened. Place the pan over medium heat and let it cook without stirring. You can gently swirl the pan occasionally to ensure even cooking.

As the sugar heats, it will start to bubble and change color. Keep a close eye on it. Once it turns a deep amber color, remove it from the heat. This should take about 8-10 minutes.

Carefully add the unsalted butter to the hot sugar mixture. Be cautious, as it will bubble vigorously. Stir until the butter is fully melted and combined.

Gradually pour in the heavy cream while stirring continuously. The mixture will bubble up again, but keep stirring until it smooths out.

Add a pinch of salt if desired, which will enhance the flavor and balance the sweetness. Stir to combine.

Let the caramel cool in the pan for a few minutes before transferring it to a heatproof container. It will thicken as it cools. Store in an airtight container in the refrigerator for up to two weeks.