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- In a saucepan over medium heat, melt the butter.
- Stir in the brown sugar and cook, stirring constantly, until the sugar has completely dissolved and the mixture is smooth. This should take about 2-3 minutes.
- Add the milk or cream to the sugar mixture and bring it to a gentle boil, stirring continuously. Allow it to boil for about 2 minutes while stirring, then remove it from the heat.
- Let the caramel mixture cool for a few minutes, then stir in the powdered sugar and vanilla extract until the frosting is smooth and creamy. You can add more powdered sugar if you desire a thicker consistency.
- Once your caramel frosting is ready, you can use it to frost your cake or cupcakes. Be sure to wait until the cake is completely cool before applying the frosting.