This homemade caramel syrup recipe uses only 4 basic ingredients and is the BEST. The light caramel flavor is perfect for drizzling on pancakes, waffles, ice cream, and even coffee!
In a large saucepan, add the butter, light brown sugar, and water. Stir well to combine.
Place the saucepan over medium heat and bring the mixture to a gentle boil, stirring occasionally to prevent sticking.
Once boiling, reduce the heat to low and let the mixture simmer for 2 to 3 minutes. This helps thicken the syrup and deepen the flavor.
Remove the pan from the heat and immediately stir in the vanilla extract. Mix well until fully incorporated.
Let the syrup cool slightly before using. Drizzle over pancakes, waffles, or desserts, or stir into coffee for a sweet, buttery boost. Store leftovers in a sealed jar in the fridge and reheat as needed.
Notes
For a thinner syrup, stir in an extra 2 tablespoons of water. For a thicker syrup, reduce the water to 3 tablespoons. Keep leftovers stored in an airtight container in the refrigerator for up to 2 weeks.