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Warm the coconut milk in a small saucepan or microwave until steaming but not boiling, then set aside. (Cold liquid added to hot caramel will seize and splatter violently.)
Combine the sugar and water in a medium heavy-bottomed saucepan over medium heat, stirring just until the sugar dissolves. Once the mixture is clear and beginning to bubble, stop stirring and let it cook undisturbed.
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