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From Julie Deily of The Little Kitchen.
Add sugar and water to a stainless steel pot (one that has a heavy bottom or you can use a nonstick pot; I use one with a ceramic coating). Stir to combine. Turn heat to medium high.
Be sure not to stir or mix the sugar mixture, only swirl the pot. Cook until sugar turns to a caramel color, about 13–14 minutes. (Be sure to watch it carefully so it doesn’t burn.) If any sugar crystals start to form around the sides of the pot, use a brush coated with water to dissolve the crystals.
Turn heat down to low. Add butter (be careful because it’s really hot) and whisk until thoroughly combined. Add heavy cream and whisk thoroughly and vigorously, again being careful.
Remove from heat and add vanilla extract and salt (to your preference), whisking again to ensure it’s evenly mixed. Allow caramel to cool before placing in sealed containers and storing it in the refrigerator.
Homemade caramel can be reheated and topped over ice cream, used to make buttercream, or whatever you would like. It keeps in the refrigerator for up to 2 weeks.
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