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Combine 1 cup granulated sugar and the water in a medium heavy-bottomed saucepan over medium heat, stirring just until the sugar dissolves. Once dissolved, stop stirring and cook, swirling the pan occasionally, until the syrup turns a deep amber — the color of dark honey — about 10–12 minutes. Watch closely once the edges begin to color, as the caramel can darken quickly.
Remove the pan from the heat and carefully pour in the warmed heavy cream in a slow, steady stream — the mixture will bubble vigorously. Add the butter and 1 tsp flaky sea salt, then whisk until smooth. Set the caramel aside to cool slightly while you prepare the custard.
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