In a saucepan, add sugar and 1/4 cup water. Heat on medium, and allow sugar to completely dissolve before bringing to a boil. Cook for two to three minutes until the caramel turns a deep amber colour. Remove from heat and carefully add remaining hot water, Vanilla, and Salt. Whisk to combine and set aside to cool.
In a blender, combine Ice, Coffee, Milk, Caramel Syrup, and Caramel Sauce. Blend until smooth. Pour into a tall glass and garnish with Whipped Cream and a drizzle of Caramel Sauce. Enjoy! :)