Instructions
Place sugar and water into a saucepan over medium low heat and stir the until sugar has dissolved. Dissolve any crystals forming on the side with a wet pastry brush.
Once sugar has dissolved increase heat to high.
At this point do not stir the mixture directly. Now and then, using the handle, give the pot a swirl to keep the mixture moving. The mixture will start to bubble after a minute or so.
After 3-4 minutes the mixture will turn from a light amber to medium amber and then finally to a dark reddish brown color. Once the mixture starts to smoke, add the butter and heavy cream. The mixture will bubble wildly. Whisk to combine (bubbles will subside upon cooling). Set aside to cool completely.
Notes:
The longer the caramel cooks the harder it will become as it cools.
If after cooling the caramel is too hard, re-heat it and add more water, milk or heavy cream to thin it.
If after cooling the caramel is too liquid-y, make a second batch and cook the caramel slightly longer, then mix the two together.
For a deeper caramel flavor add your butter and cream after the mixture has smoked for about 30 seconds.