Add the sugar and water into a medium saucepan and stir until sugar is dissolved. Place over medium-high heat and brush the inside of the pot with a wet pastry brush so crystals do not form.
Cook until sugar mixture becomes a golden amber color, then remove from heat and whisk in the cream vigorously. Add butter and bring back to a medium low heat. Continue whisking and cook for an additional 2-3 minutes.
Mix in salt, transfer to a bowl and set aside to cool to room temperature. Caramel can be made in advance and refrigerated.
Don't stir! After the sugar has dissolved you don't need to stir as it can cause crystals to form and ruin that silky consistency.
DO brush the side of the pot down with a wet pastry brush. This will help prevent those pesky crystals from forming.
Watch the color carefully taking the sugar to a deep amber color gives a wonderful flavor but going too dark will make a bitter caramel and that sugar will go from perfect to burnt in an instant!
Use room temperature butter and cream.
Caramel keeps for a while in the fridge so you can make this part ahead of time or make a big batch and save some for ice cream, coffee drinks and snacking!
When adding salt dip your a spoon in let the caramel cool a bit then taste and add more salt if needed. You can also sprinkle more salt on at the end for a finishing touch!