To make the vanilla syrup, combine sugar and water in a sauce pan. Bring to boil over high heat and boil for 5 minutes. Let cool and add vanilla extract. Stir well and keep in a sealed container, refrigerated.
To make coffee, either use an espresso machine to make coffee and steam milk, or heat milk until hot, but not boiling on stove-top and transfer to a blender. Blend until frothy. For espresso, if you don’t have a machine, just make double strength coffee.
The proper way to make a caramel macchiato is vanilla in the bottom, steamed milk, leaving 1/2 inch from the top, topped with foam, then your shot or shots of espresso, finally topped with a caramel cross hatch which is 7 lines one way 7 lines the other way and 2 full circles all the way around the outer cup.