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In a medium saucepan, combine half of the water (about ½ cup) with all of the sugar. Heat over medium heat, stirring to dissolve the sugar initially.
Once the sugar dissolves, stop stirring and allow the mixture to boil gently. Let it boil for about 15 minutes, swirling the pan occasionally but avoiding stirring, until the syrup turns a golden amber color, about 350 degrees F on a candy thermometer.
Carefully whisk in the remaining ½ cup of water (be careful as it may splatter) and stir until the syrup is smooth. If any sugar crystals form, return to low heat and stir until dissolved.
Remove from heat and stir in the vanilla extract and, optionally, a pinch of salt. Add up to ⅛ cup additional water to adjust the consistency of the syrup.
Allow the syrup to cool before transferring it to a clean jar or bottle for storage. It keeps for about two weeks in the refrigerator.