In a saucepan, mix the sugar and water and bring to a boil over medium-high heat, stirring constantly.

Cook and continue stirring until the sugar has completely dissolved.

The texture should be smooth and free of lumps, and thick enough to coat a wooden spoon.

Cook a little longer, until the syrup takes on a honey color for light caramel and a dark-brown color for dark caramel.

The mixture will reach the caramel stage between 320 and 360º F.

Check the temperature with a candy thermometer.

Be extremely careful, as hot caramel can cause severe burns.