In your heavy-bottomed saucepan, combine the granulated sugar and water. Stir gently to combine, ensuring all the sugar is moistened.
Place the saucepan over medium heat. Allow the mixture to come to a boil without stirring. You can gently swirl the pan occasionally to ensure even heating.
As the mixture boils, keep a close eye on it. The sugar will begin to caramelize, changing from clear to a beautiful amber color. This process usually takes about 8-10 minutes.
Once the caramel reaches a deep amber color, immediately remove the saucepan from the heat.
Slowly and carefully pour in the heavy cream, followed by the unsalted butter. Stir continuously until fully combined.
Add the vanilla extract and coarse sea salt to the mixture. Stir well to incorporate all the flavors.
Allow the salted caramel sauce to cool slightly in the saucepan before transferring it to a storage jar. Once it has cooled to room temperature, seal the jar and store it in the refrigerator.