1) Take a heavy bottomed saucepan and pour the sugar in the center of the pan not touching the sides.
2) Pour water in the center and then add corn syrup and melt the sugar on medium high heat.
3) Let the sugar syrup turn dark amber color gently. Turn off the heat.
4) In a bowl, whisk together water and powdered milk until smooth to make evaporated milk.
5) Slowly and carefully add evaporated milk to the caramel syrup and keep stirring.
6) Add vanilla and stir. Let it chill completely.
7) Serve the caramel sauce over ice cream or any dessert you like.