What’s the difference between caramel and butterscotch sauce?

This is a common question since both are cooked sugar concoctions. But the main difference is caramel is made with granulated sugar while butterscotch is made with brown sugar. At its simplest, caramel is sugar that’s heated and melted until it’s brown but not burned. Water can be used to thin it, or to make soft caramel, cream or milk is added. Butterscotch at its most basic is a mixture of brown sugar and butter, melted and cooked together. Cream is typically added. And, surprising to some, there’s no Scotch in butterscotch. Vanilla is a common flavor addition in both sauces, and they both benefit from a pinch or two of salt.