Add the sugar and water into a medium saucepan, whisk gently to mix.
Place the pan on stove over medium heat and cook until the sugar dissolves.
Mixture will turn clear within a couple minutes.
Increase heat to medium high and boil until sugar begins to change in color.
This can be anywhere from 5-8 minutes.
Watch until sugar changes to the desired shade of amber (lighter for light caramel and medium-dark for dark caramel).
See tips above.
Remove from heat immediately.
Slowly add butter and cream a Tbsp of each at a time, stirring with a wooden spoon. (this will cause an increase in bubbling and spitting, so be careful, keep your face back.)
Continue until all butter and cream are added and caramel is smooth.
Pour in vanilla extract and sprinkle in the salt. Add 1-2 Tablespoons of bourbon for a little extra flavor.
Stir again and let cool to room temperature.
Transfer caramel to a mason jar and refrigerate.
Caramel with thicken as it cools.