The act of caramelizing sugar is to heat sugar so as to get a brown golden syrup - mostly used in desserts and cakes.
Heat a small heavy bottomed container for a minute on medium flame.  Take 5 tbsps sugar and add two tbsps water (use as per recipe)  but don't stir. Brush the sides of the container with a brush dipped in cold water.  Bring it to a boiling point and see that the colour changes to golden. Then immediately put the vessel in cold water and use as per recipe.