Melt the butter and whisk with the condensed milk until smooth.

Add remaining ingredients and stir constantly over low heat (I used a double boiler- which consisted of a stainless bowl set over a smaller saucepan with simmering water several inches beneath the bottom of the bowl, but you could also use a diffuser plate), just until the caramels melt and you don’t see chunks coming off the spoon. DO NOT BOIL.

Serve warm or at room temperature.

Refrigerate extra and reheat if needed over low heat.