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In a saucepan, combine the milk, heavy cream, and granulated sugar over medium heat.
Add the unsalted butter and stir until it melts completely.
In a small bowl, mix the cornstarch with water to create a slurry.
Once the mixture in the saucepan is warm, add the cornstarch slurry and stir continuously until the sauce thickens.
Remove from heat and stir in the vanilla extract and salt.
Let it cool slightly before serving over your favorite desserts like bread pudding, apple pie, or pancakes.