Homemade Food Gifts for this holiday season! This is a super easy gift. The caramel sauce is made by boiling UNOPENED sweetened condensed milk. Easy, peasy! The trick is making sure the cans are completely covered with water at all times (the cans will burst if not covered in water). I’ve made caramel in a can many times. For the finishing Christmas touch, Michelle Underwood designed these adorable caramel sauce labels. The printable labels, instructions and ideas are found here. Your friends and family will love it!