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Melt the sugar: Place the sugar in a medium saucepan over medium heat. Let it sit until it starts to melt around the edges, then gently stir with a heatproof spatula. Keep stirring as it turns into a smooth, amber liquid.
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Add the butter: Once the sugar has fully melted and darkened slightly, add the butter pieces. The mixture will bubble quickly, so be careful. Stir until the butter melts completely.
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Pour in the cream: Slowly add the heavy cream while stirring. The caramel will bubble again. Keep stirring until the mixture becomes smooth and creamy.
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Finish and cool: Remove from heat and add a pinch of salt if you want a salted caramel flavour. Let the caramel cool for 15 to 20 minutes before using.