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In a medium size pot, combine everything except the vanilla.
Monitor the heat of the mixture with a candy thermometer while stirring occasionally.
When the thermometer reaches 245 degrees F {240 degrees is also called soft ball stage, I like to cook mine to 245 degrees}, remove pot from heat.
Stir in vanilla.
Transfer mixture to a 9x13 pan lined with parchment paper. Let the caramel cool completely. (I generally cover it with plastic wrap after a couple hours and leave it on the counter overnight to cool.)
When cooled cut the caramel into small squares and wrap them in wax paper for storage. Enjoy!