In a medium saucepan, stir together the sugar and the water. Cook over medium heat until the sugar dissolves. Increase to high heat and cook the mixture until it is golden amber in color. (Do not stir after you increase the heat.) Remove the saucepan from the heat and carefully stir in a few tablespoons of cream. Let the caramel bubble and subside and then add a few more tablespoons of cream. Slowly add the rest of the cream. Stir until smooth.
Serve the sauce warm or cold. It can be reheated in a double-boiler.