Place the sugar into a cool heavy-bottomed sauce pan. This pot should be big enough to accommodate the caramel when it bubbles up, so use a slightly bigger pan than you think you'll need.

Drizzle a small amount of water and a few drops of lemon juice over the sugar. Stirring may move some of the sugar up the sides of the pan which can cause the caramel to crystallize. However, the lemon juice will aid in keeping the caramel from crystallizing.

Gently heat the sugar until the water incorporates.

Turn the heat under your pan up to bring the sugar to a boil.

If you have a candy thermometer, you'll watch for the temperature to be anywhere between 304 and 330 degrees Fahrenheit. The temperature will determine whether the caramel is a light or dark finished product.

Move the pan off of the flame. Gently and very carefully stir in the butter. The caramel will foam and bubble until all of the butter is incorporated.

Gently pour in the cream. If your cream is not room temperature, the caramel will harden. Simply put the pan back onto the heat to soften it while stirring.

The caramel can be left at room temperature to cool. The end result will be a velvety, smooth caramel.