Start your day off on a deliciously decadent note with this Homemade Caramel-Vanilla Iced Coffee. It’s so much better than the stuff you get at those fancy coffee shops!

Coffee connoisseurs, look away! Some might cringe at calling this “coffee,” but for me, this sweet, creamy caramel-vanilla iced coffee is pure heaven in a glass. I just adore a flavored brew with an embarrassingly generous pour of my homemade caramel sauce. No, no dainty cups of espresso or simple cappuccinos for me, please. I need a little decadence to get me going and start my day off on a (literally!) sweet note. This is my morning ritual and the reason I don’t mind rolling out of bed at the truly ungodly hour of 5 a.m.
I’ll be honest. I love Starbucks as much as anyone. Pumpkin spice latte? Yes, please. Cinnamon roll frappuccino? Absolutely. But let’s face it, Starbucks isn’t great for my tummy or my wallet. A typical caramel latte consists of a blend of espresso, dairy milk, and an additive-laden caramel syrup with who knows what else. Trust me, this homemade version will be worlds better. I promise!

Is This Homemade Caramel-Vanilla Iced Coffee Healthy?
Healthy? Not exactly. While it’s better than the coffee shop versions, it still contains sugar and caffeine, which isn’t for everyone. That said, you can easily use decaf, and the amount of syrup is totally up to you. I go for two tablespoons (generous, I know), but maybe a teaspoon would suffice. Start small, then adjust to taste. This recipe calls for ghee, but you can make it vegan by using a plant-based butter instead.
What is Ghee?
Essentially, ghee is a form of clarified butter commonly used in South Asian cuisine. It’s made by simmering butter until the water evaporates and the milk solids caramelize and separate out, leaving behind the concentrated fat. This process gives ghee a distinctive nutty, caramelized flavor that’s richer than regular butter. Unlike butter, ghee is free of lactose and casein, which are removed along with the milk solids. This makes it easier to digest for those who are lactose intolerant or sensitive to dairy. Bear in mind that ghee has slightly more saturated fat and calories than butter. In this recipe, it can be replaced by plant-based butter.

How To Make Ahead and Store
The caramel should be made 2 hours in advance. If stored in a mason jar or airtight container at room temperature, it will stay good for up to 4 days. Do not store it in the fridge, as it will harden. If the caramel sets and becomes difficult to pour, you can microwave it for 5 seconds or so. You want it pourable but not runny! You can brew the coffee the night before and chill it in the fridge, but the drink is best enjoyed fresh.

Serving Suggestions
If you want something a little more substantial with your morning iced coffee, keep things balanced by not going overboard with sugary treats. Instead, opt for these Sugar-Free Keto Low-Carb Granola Bars or these Low-Carb Sugar-Free Keto Blueberry Muffins With Almond Flour. And how about making your coffee with homemade Oat Milk? The recipe is easier than you might think!

Recipe
Ingredients
For the Caramel:
- 1/2 cup coconut sugar packed
- 1/4 cup unsweetened vanilla almond milk
- 4 teaspoons ghee (or plant-based butter)
- 1/2 teaspoon vanilla extract
For the Coffee:
- 3 cups brewed coffee chilled
- 1 cup unsweetened vanilla almond milk
- Ice
Instructions
- In a small pot, stir together all the ingredients for the caramel over medium heat. Bring to a boil.
- Once boiling, cook until the caramel is reduced by almost 1/2 and takes on a darker color. This takes about 5 to 6 minutes. Stir constantly so that it doesn't burn.
- Immediately transfer to a measuring glass (you should have just over 1/3 cup of caramel) and let sit for at least 2 hours, stirring occasionally, until nice and thick.
To Assemble:
- Fill three highball glasses halfway with ice cubes. Pour 1 cup of cold coffee into each glass, followed by 1/3 cup of almond milk. Add 2 tablespoons of the caramel syrup into each glass and stir well, until the caramel is dissolved and fully incorporated.
- DRINK!
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