Combine sugar and water in a small saucepan over medium heat. If you're using pre-made caramel syrup, skip to step 4.
Continue heating until the sugar dissolves. Stir occasionally and prevent the mixture from boiling as it adds a bitter flavor to the syrup.
Once it reaches your preferred consistency, remove it from the heat and allow it to cool. Pour into a container and store in the fridge for up to 1 month.
Pull 2 shots of espresso or brew coffee per your preference.
Combine ice and espresso or coffee with 1 tablespoon of simple syrup and 1 teaspoon caramel extract. Or substitute 1 tablespoon pre-made caramel syrup.
Shake for 1-2 minutes and strain the coffee mixture into a mason jar filled with ice.
Pour milk over the top, either straight out of the carton or cold foam.
Add a caramel drizzle if you have a sweet tooth, and enjoy!