I learned how to make caramel sauce this way years ago from my friend Suzanne and now make it any time a recipe calls for caramel sauce. There’s really no reason to buy it when you can so easily make it with just three simple ingredients — sugar, butter, and cream.

How to Make Easy Homemade Caramel Sauce

To make caramel sauce, first you start by heating white granulated sugar. (Make sure you are using real sugar, not a sugar substitute.) As the sugar heats, it will melt and start to “caramelize” (hence the name “caramel”), changing color and creating caramel flavors. Once the sugar has all dissolved and turned brown, we add butter. The heat of the caramel will melt the butter and create even more wonderful flavors. Finally, after the butter has melted, we add heavy whipping cream. This will allow the mixture to be loose enough to be used as a sauce.

Use a Thick-Bottomed, Sturdy Pan

Making caramel requires that you cook the sugar evenly, which is much easier to do with a thick-bottomed, sturdy pan that can distribute the heat. If you find that your sugar is burning and not melting, the culprit is most likely the pan heating unevenly. In this case you can either lower the heat and cook the sugar more slowly, or you can start over and add some water to the sugar in the beginning. Use a pan with high sides as well. When you add cream to the caramel mixture the hot caramel will bubble up. You want to make sure you have a pan that will not overflow when this happens.

To Use Water or Not to Use Water

If you are having problems with sugar burning before it is all melted, you might try adding a half cup of water to the sugar in the beginning of the process. This will help the sugar dissolve and heat more evenly. It will also take quite a bit longer to caramelize the sugar, which is why I usually don’t use water.

Safety First!

My one note of caution is to be extra careful while you are cooking the sugar, as with any candy making process. Once the sugar has melted it has a much higher temperature than boiling water. It helps to wear oven mitts and long sleeves to prevent burns if the caramel splatters.

Try Caramel Sauce on These Recipes:

French Vanilla Ice Cream Apple Pie Classic Cheesecake Coffee Bourbon Chocolate Chip Ice Cream Caramel Brownies

If you find that you end up burning some of the sugar before the rest of it is melted, the next time you attempt it, add 1/2 cup of water to the sugar at the beginning of the process. This will help the sugar to cook more evenly, though it will take longer as the water will need to evaporate before the sugar will caramelize. We don’t recommend doubling this recipe. Safety first! Make sure there are no children under foot and you may want to wear oven mitts; the caramelized sugar will be much hotter than boiling water. As the sugar starts to melt, lower the heat a bit to keep the sugar from burning. Keep whisking until all of the sugar has melted. It will clump up quite a bit, but just keep stirring. Once all of the sugar has melted, stop stirring. You can swirl the pan a bit if you want. Note that when you add the butter and the cream, the mixture will foam up considerably. This is why you must use a pan that hold at least 2 quarts, preferably 3 quarts. Store in the refrigerator for up to 2 weeks. To reheat the caramel, microwave for 30-second intervals, heating just until warm and pourable. Alternatively, add to a double boiler or a heatproof bowl set over a pot with a small amount of simmering water and heat until warm.