You can but it is very dangerous. I have heard of them exploding if you aren't watchful of the water level. It also takes a few hours. I have a great caramel recipe that I use for Banoffee Pie. It is as follows:
395g can sweetened condensed milk
75g butter, chopped
½ cup (110g) firmly packed brown sugar
2 tablespoons golden syrup
Combine ingredients in a saucepan over a medium heat. Stir over heat for 10 minutes until you have a caramel colour.





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