In a small sturdy pot, combine sugar and 1 cup of water.
Stir over medium heat until sugar dissolves.
Stir occasionally until it comes to a boil. Stop stirring but watch carefully, the caramel can go from perfect to burned quickly.
Watch for the caramel to turn a light amber color. Once this happens, remove from heat immediately.
Very carefully add the second cup of water, it can splatter so use caution.
Stir in vanilla and salt.
Allow to cool and then pour the salted caramel syrup into your glass bottle.
Add 1 to 2 tablespoons of salted caramel syrup to 8 ounces of coffee.
Store salted caramel syrup in the refrigerator for up to a couple of months.