In a 10- to 12-inch nonstick frying pan over medium-high heat, shake sugar often until melted and amber-colored, 8 to 10 minutes.
Pour melted sugar onto foil. Let stand until hard, about 30 minutes. Peel off foil and break caramel into chunks.
With motor running, drop chunks into a food processor and whirl into a fine powder. Or whirl chunks in batches in a blender. Immediately store in airtight container. Powder keeps indefinitely, but absorbs moisture quickly if exposed to air.
This works exactly as described, but you do need to watch carefully because caramel will go quickly from caramel to burned. However, I did not find the end result to be very caramelly tasting - it just tastes sweet. And yes, I cooked it until it was dark amber - just before burning (I know because I burned the first batch). I was hoping to use this in a hot chocolate mix to make Caramel Hot Chocolate, but all it did was sweeten it. Bummer.
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