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This extra special sweetener is made by caramelizing sugar, then grinding it into a powder. The result is the most delicious caramel sugar with classic caramel taste in every bite! Perfect for sweetening drinks, sprinkling over desserts, and countless other uses!

This recipe came from an attempt to make caramel-flavored hot cocoa mix at home.
Trying to get that caramel flavor without using caramel sauce was challenging, and I didn’t want to splurge on expensive dry caramel powders online.
Eventually, I realized I could either toast sugar (hard to do without melting it) or simply make a basic caramel using the dry method, let it cool, then blend it into a powder.
The result is one of the most delicious flavored sugars I’ve ever created! It has a broiled sugar flavor, similar to creme brulee.
No need to bother with a candy thermometer or any of that. This is a super simple recipe anyone can make!
Plus, it makes a great homemade Christmas gift since most people have never tried this and will think you’re a fancy sugar worker!
Not too confident about working with sugar? This is a great recipe for beginners! Even if you don’t melt the sugar perfectly and it becomes clumpy or gritty, it will blend up just fine. Perfection not required!

Ingredients
- White cane sugar – There is only one ingredient in this recipe, which means technique is really important. We’re going to start by melting and caramelizing the sugar in a large pot, then pouring it onto a sheet pan to cool and set. After that, we’ll break it into pieces and blend it into a powder. It’s easy, but you’ll definitely want to use regular white sugar (not an alternative) and follow instructions carefully.
How to Make Caramel Sugar
Before you begin, line a sheet pan with parchment paper or a silicone mat. Set to the side.

Step 1: Place a stockpot or saucepan over medium low heat and add some of the sugar. Shake the pan slightly to help it spread evenly.

Step 2: Allow the sugar to melt, adding more sugar gradually over time.

Step 3: Tilt and swirl the pan as needed to help move the melted sugar around. Try not to stir, although some stirring is okay.

Step 4: Keep going until the sugar crystals are totally liquid and the mixture has a rich golden brown color. If you heat the mixture too high, it can burn and turn overly dark and bitter.
This image is how my caramel looks when I remove it from the stove.

Step 5: Once the mixture is fully melted, pour it into your prepared pan to cool. Caution: Melted sugar is extremely hot!
Let the mixture cool to room temperature and harden. Then, break the sugar by hitting it with a butter knife. If properly caramelized, the sugar will break like glass.

Step 6: Let the mixture cool to room temperature and harden. Then, break the sugar by hitting it with a butter knife.
If properly caramelized, the sugar will break like glass.
Depending on your food processor, you may need to break it up into very small pieces.

Step 7: Place the broken caramel shards in your food processor and pulse until it reaches your desired consistency.
Be careful not to overmix as too much heat can cause the sugar to soften.
(If you look closely, you can already see little drops of moisture on my caramel from making this batch on a rainy day.)

Step 8: Once blended, transfer to an airtight container (ESSENTIAL) and store at room temperature. Use however you’d like!

Free Printable Caramel Sugar Labels
Want to add a cute little tag to your jars for gifting? Click the link below to view and download printable tags in two different sizes. No email necessary!
Storing Suggestions
This caramel sugar MUST be stored in a fully airtight container or the sugar will absorb the moisture in the air and turn back into a liquid. Sugar is naturally hygroscopic and caramel is even more so, meaning it will want to absorb any moisture it can find.
You may have more challenges with this on a humid day. Avoid having water boiling or other moisture-producing activities while you work on this project.
To keep it nice and dry, I just store mine in a mason jar, but you could add a couple of food-safe moisture absorbers, too.

Tips
Keep it dry. After testing this recipe multiple times and almost always during rainy weather, I’ve found that placing the trays in a warm oven with the light on is a great way to keep the caramel dry before blending.
Don’t worry about the messy pan. The hard caramel will make you think you ruined your pan, but you didn’t! Just soak it in hot water and the sugar will melt.
Go slow. There’s no rush. It’s better to work at a lower heat and take a little longer than to rush through and burn your caramel.
Getting the right consistency. You can see from these photos that my mixture looks a little gritty, similar to a brown sugar. I’ve also made it perfectly smooth powder in a spice grinder.
The spice grinder isn’t ideal for larger batches since it will overheat, but it does get a really nice powder.
You can also keep pulsing the mixture in your food processor until you get it to look the way you want. (Remember, the ambient moisture level may affect your results, too.)
Working with Different Amounts of Sugar
I’ve made this caramel sugar several times, first with about 1/2 cup of sugar, then 1 cup, then 2 cups.
You’ll want to pick a pan that matches the quantity you are working with (for the amounts I just mentioned, I used a small saucepan, stainless steel frying pan, and a 6qt stockpot).
The main difference was that 2 cups of melted caramel spread past my parchment paper sheet on my half sheet pan, and was a little bit of a mess.
If you’re working with more than 1 cup of sugar, prepare one lined half sheet pan per 1 cup of sugar. This will prevent the caramel from being too thick or spilling out over the sides of your parchment.
So if you’re melting two cups of sugar, set up two sheet pans and spread the mixture evenly over both.
How to Use Caramel Sugar
Although I initially created this to make caramel hot cocoa mix, there are so many uses.
It’s the star of this hot caramel milk drink mix, which makes a fantastic alternative to hot cocoa for holiday gifting.
Really any time you need a dry sweetener (compared to a wet one, like honey or maple syrup), you can use caramel sugar for extra depth of flavor.
This means you can add it to whipped cream, ice cream, cookies, and more!
I’ve only just started to play around with all the different uses and will adjust this post with more recommendations over time. Please share your uses below, too!
Right now, I like to add a spoonful to my morning coffee for a super simple caramel coffee. So good!
More Flavored Sugar Recipes

If you made this recipe, please leave a comment or ask a question below! I’d love to hear what you think or troubleshoot any issues.
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Caramel Sugar Recipe
Equipment
- Medium saucepan or stockpot
- half sheet pan
- Parchment paper
- Pint mason jar
Ingredients
- 1 cup cane sugar
Instructions
- Line a sheet pan with parchment paper or a silicone mat. Set to the side.
- Place a stockpot or saucepan over medium low heat and add part of the sugar. Shake the pan slightly to help it spread evenly.1 cup cane sugar
- Allow the sugar to melt, adding more sugar gradually over time. Tilt and swirl the pan as needed to help move the melted sugar around. Try not to stir, although some stirring is okay.The goal is to liquefy the sugar crystals, making the caramel transparent with a rich golden brown color. If you heat the mixture too high, it can burn and turn overly dark and bitter.
- Once the mixture is fully melted, pour it into your prepared pan to cool. Caution: Melted sugar is extremely hot!
- Let the mixture cool to room temperature and harden. Then, shatter the sugar by hitting it with a butter knife. If properly caramelized, the sugar will break like glass.
- Transfer the broken caramel pieces to the bowl of your food processor and pulse until it resembles sugar. Try not to overmix as the heat can cause the caramel to soften back up.
- Transfer to an airtight container (ESSENTIAL) and store at room temperature. Use however you’d like!
Notes
Did you try this recipe?
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If I need 1 cup of caramel sugar do I start with 1 cup of white sugar. I want to try your hot caramel recipe! Thank you!
Hi, Susan! Yes, you can definitely start with 1 cup of white sugar, but you may end up with a little extra. I usually do 2 cups at a time and always have about half a cup of extra caramel sugar. Have fun! I love making caramel sugar and the hot caramel recipe!