Dulce de leche and caramel are both sweet, luscious treats made from sugar, but they differ in their preparation and flavor. Dulce de leche is created by slowly cooking sweetened condensed milk until it transforms into a creamy, caramel-like consistency with a rich milkiness. It has a smooth texture and a balanced combination of sweetness and dairy notes. Caramel, on the other hand, is made by heating sugar with butter until it liquefies and turns into a deep amber color through caramelization.