Prepare the Ingredients: Gather all the ingredients and ensure your heavy cream is measured out, as it will be added quickly.
Melt the Sugar: In a medium saucepan over medium heat, add the granulated sugar. Stir constantly with a wooden spoon or rubber spatula until melted and golden brown.
Add Butter: Once the sugar is fully melted and has a nice amber color, add the unsalted butter. The mixture will bubble vigorously—keep stirring until the butter is completely melted.
Incorporate Heavy Cream: Slowly pour in the heavy cream while stirring constantly. Be cautious, as the mixture can boil up! Stir until combined and smooth.
Finish with Salt and Vanilla: Remove from heat and stir in the pinch of salt and vanilla extract, if using.
Cool and Store: Allow the caramel to cool slightly, then transfer it to an airtight container. It will continue to thicken as it cools.