In a microwave-safe glass bowl combine the sugar, corn syrup, and water. Microwave on high for 5-7 minutes, until the mixture is just beginning to brown.
Carefully remove from microwave and let sit for 3-5 minutes, until it darkens in color.
Stir in the warm cream, one tablespoon at a time, followed by the butter and vanilla.
Pour the caramel sauce into a glass jar and allow it to cool completely, then cover tightly and store in the refrigerator for up to 2 weeks. Reheat in the microwave before using.
Make ahead tip
Refrigerate - Once the caramel sauce has cooled completely, cover it tightly and store it in the refrigerator for up to two weeks. Reheat in the microwave before using.