Cut the butter into 4-8 pieces. Over medium heat, melt the butter in a stainless saucepan.
Continue to cook, stirring occasionally to keep the milk solids from sticking hard to the bottom. Keep an eye on the color - once the milk solids turn light brown and the smell is nutty, take it off the heat.
Pour into a bowl and let it cool some while you work on the caramel.
MAKE THE CARAMEL
Heat the sugar and water in a stainless steel skillet over medium-low heat and stir to combine. Stir the sugar often as it melts with a rubber spatula or wooden spoon. The sugar will clump and harden, but will eventually melt. Stir and cook until the sugar is not lumpy and it is an amber color. This may take 15-20 minutes and you may need to turn your heat up if excessive clumping occurs until the sugar melts completely.
Once sugar is completely melted, whisk in the brown butter and thoroughly combine.
Turn heat to low, and slowly (and carefully) add the cream whisking as you pour. This will bubble significantly, so pour slowly to try to keep it in the pan and not on your stovetop to clean up later!
Once whisked in completely, add the bourbon, vanilla extract, and salt and continue to whisk until completely combined. Let it cool and pour into an airtight container and store in the fridge. The caramel will thicken as it cools.