Dessertlover's Classic Caramel Sauce

Step 1
Bring the water, sugar, and butter to a simmer in a saucepan over medium heat. Do not stir the mixture until the sugar has completely dissolved in the water. Cook uncovered, stirring occasionally, until the caramel has turned golden brown, 5 to 10 minutes.

Step 2
Carefully pour in a slow, steady stream of cream into the caramel while stirring constantly. The hot caramel will boil vigorously when the cream is added and solidify in areas. Add the vanilla extract and salt. Continue stirring over low heat until the caramel is smooth and creamy, 5 to 10 minutes more. Allow to cool for at least half an hour before using.