Mix while the milk and sugar are heating up over medium to high heat.
Bring to a rolling boil and take back to medium heat.
Stir occasionally while the milk and sugar get reduced.
At the last stage, the milk and sugar will get frothy and thick. Just keep on stirring over a medium heat setting while the ingredients are getting thick and darker in color.
Reduce and stir cook until you are satisfied with the color of your caramel.
Take from the heat and quickly pour liquid caramel over a buttered parchment paper. You need to be fast because caramel thicks quickly.
Swiftly spread out the caramel as good as possible and leave it to cool for about 10 minutes.
When the caramel can be touched without you getting burned, you can go ahead and cut the caramel into a desired size and shape.
Either wrap your caramel individually in butter paper or store them in a tin box lined with parchment paper.
Video
Notes
I use a large skillet to prepare my old fashioned caramel so that it reduces faster and the caramel gets formed within 30-40 minutes.
I use normal milk. I recommend to use a milk which contains enough fats or else the caramels won't shape the way they should. Don't use low fat milk.
I used regular sugar but you can use brown sugar too.
You may add flavors to your caramel with the other ingredients. For some ideas see in the post.
Keep in mind that caramel is super hot so be careful and don't burn yourself!
My grandmother would roll the caramel into balls. I think spreading out and cutting the caramels is easier and less time consuming.