In a large sauce pan, pour the milk, sugar and vanilla and bring to a simmer on medium-high heat. Mix well.
When sugar has dissolved, add the baking soda (baking soda helps prevent the milk proteins from coagulating resulting in a smoother sauce). Mix well.
Reduce the heat to medium-low and simmer with pan uncovered. Stir occasionally, but do not blend in the foam that floats on the top of the mixture.
Continue to cook for 1.5 – 2 hours until it’s thick, caramel colour and has reduced to about 1 cup.
Strain the sauce through a fine mesh strainer. Store in the refrigerator in a sealed container for up to a month. Enjoy!