In a medium saucepan heat the sugar on medium-low to medium heat. Be patient, sugar burns easily! You want the sugar layer to be fairly thin across the pan so use one wide enough, or otherwise add it in parts (1/4 allow it to dissolve, then add another 1/4, etc).
Allow the crystals to dissolve, they'll start to turn golden brown. This takes me about 5-10 minutes. Be sure to give your pan a shake or stir the sugar so it doesn't burn.
As it dissolves completely add the water. IF you have clumps form, don't worry, they'll dissolve once you add the water. *** BE careful as it will spatter some (so keep those kiddos away from the stove now.)
Let the water heat up in the pan, and then continue to stir as any clumps that formed continue to break down. In total this takes about 20 minutes, but it will vary based on your pan size and how well you got the clumps to break down right away.
Once it's all dissolved (trust me, it'll dissolve, just be patient), remove from heat and place in an air tight container. It'll keep in the fridge for a week (probably more but we never let it last that long!)