Bring the water to a boil in a small saucepan or kettle.

Steep the black tea in the hot water for 3 to 5 minutes, depending on how strong you want the tea flavor. Remove the tea bags or strain out the leaves.

In a separate saucepan over low heat, warm the milk until just steaming. Do not let it boil.

Stir the caramel sauce into the warm milk until fully dissolved. Add sugar, if using, and vanilla extract, if desired.

Combine the brewed tea and caramel milk in a large glass or mug. Stir well to blend.

Serve warm, or pour over ice for an iced version. Drizzle a little extra caramel sauce on top before serving, if desired.