Add water, sugar, and butter to a saucepan and melt the butter. After the butter has melted bring all the mixture to a boil.
Allow the mixture to boil until it changes color to brown
Reduce the heat then stir in the cream. (It is normal for caramel lumps to form. So, when you see them don’t worry) continue giving the mixture a good stir until it becomes smooth
Remove it from the heat and let it cool for about 10 mins
Once it has cooled pour it into a lidded glass jar and let it cool completely (it will get thick as it cools)
Notes
If you have prepared a lot of the Caramel sauce, you should tightly seal it and store it in a refrigerator for up to three weeks. But if you store it in a freezer, it can last up to two months.