Put sugar and water in a pan, and start cooking over medium heat.
Melt the sugar while shaking the pan occasionally. At first, there will be fine bubbles on the surface, which will change to big bubbles.
Even while the bubbles are small, the syrup starts to brown from the edges.
When it's smoking slightly and as brown as you like, take the pan off the heat.
Have the boiling water ready to go, and add it all at once. The caramel may splatter, so I recommend doing this step in the sink.
If you add the boiling water through a sieve that covers the pan as shown here, the sieve will prevent splattering.
This is the finished caramel sauce. I love caramel that is quite dark.
Transfer to a jar, and refrigerator when it's cooled down. You can store it like this for a long time.
Story Behind this Recipe
This is stocked all the time in our refrigerator. My caramel jar became empty, so I replenished our stock. If you make extra, you can make caramel flavored sweets (it's always a bit of a bother to have to make the caramel) without much effort. I love caramel.
Once the caramel starts to color, it changes very fast, so work fast. You can finish it in the microwave, but when you are making a lot of caramel sauce, it's easier to cook it in a small saucepan. The microwave oven won't get dirty, and you can easily check the sauce to see its process. The recipe here results in sauce that has the consistency of loose runny honey. Please adjust the consistency to taste with boiling water.