Using water to dissolve your sugar in gives a greater degree of control for caramel-making.
Place the caster sugar and water in a heavy-based pan. Fill a shallow pan with cold water and set it next to the stove.
Stir over low heat to dissolve the sugar. To prevent sugar crystals from forming, brush down the sides of the pan with a brush dipped in water.
Bring to the boil and simmer until the caramel takes on a deep golden colour. Swirl the pan to stop the caramel colouring unevenly.
Stop the cooking by plunging the bottom of the pan into the cold water for a few seconds.