1) Combine water, palm sugar, and coconut milk together in a sauce pan over medium heat.
2) Stir occasionally as you watch and wait for it to come to a boil.
3) After reaching a boiling point, reduce heat to low, and let simmer for 20-25 minutes.
4) Finish caramel sauce by stirring in vanilla and salt to taste.
5) Let the caramel sauce cool, and store in fridge.
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