Add the sugar and water to a medium saucepan over medium heat. Stir gently until the sugar begins dissolving.

Bring the mixture to a boil. Once boiling, stop stirring and let it cook until it changes from clear to golden amber, about 7 to 12 minutes.

Reduce the heat to low. Slowly pour in the heavy cream while whisking continuously. Be careful because the mixture will bubble and steam.

Whisk until the caramel is smooth and the cream is fully combined.

Remove from the heat. Stir in the vanilla extract and salt.

Let the sauce cool in the pan for 15 to 20 minutes. Transfer to a clean heatproof jar and cool completely before sealing.