4 tablespoons sugar
1 cup water
2 tablespoons instant espresso powder
1/4 teaspoon vanilla
3/4 cup milk
1/4 cup heavy cream
1 1/2 cups ice cubes
Garnish: sweetened whipped cream
1. In a dry heavy skillet cook 3 tablespoons sugar over moderately low heat, stirring slowly with a fork (to help sugar melt evenly), until melted and pale golden. Cook caramel, without stirring, swirling skillet, until deep golden. Add 3/4 cup water and simmer, stirring, until caramel is dissolved. (Mixture will bubble up.)
2. In a metal bowl stir together espresso powder and remaining tablespoon sugar. Pour hot caramel over espresso mixture and stir until dissolved. Stir in vanilla and remaining 1/4 cup water.
3. In a blender blend together caramel coffee mixture, milk, cream, and ice until smooth. Serve iced coffee topped with whipped cream.