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Mix water and sugar in medium heavy-bottomed saucepan. Cook over low heat for 5 to 10 min, until sugar dissolves. Do not stir. Increase heat to medium and boil uncovered until the sugar turns a warm chestnut brown, about 5 to 7 min, gently swirling pan to stir the mixture. Turn off heat and slowly add the cream and vanilla. Simmer over low heat, stirring constantly, until caramel dissolves and sauce is smooth, about 2 minutes. Allow to cool to room T.
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