
In a medium pot, combine all ingredients except for the vanilla.
Use a candy thermometer to monitor the mixture's temperature while stirring occasionally.
Once the thermometer reads 245 degrees F, take the pot off the heat.
Mix in the vanilla.
Pour the mixture into a 9x13 pan lined with parchment paper. Allow the caramel to cool completely.
After cooling, cut the caramel into small squares and wrap them in wax paper for storage. Enjoy!