In a medium saucepan, place the milk and sugar.
Heat over medium heat, stirring constantly until the sugar is completely dissolved.
Reduce heat to low and allow the mixture to simmer slowly. Stir occasionally to prevent sticking or burning. Don’t let it come to a full boil.
Simmer for 30 to 45 minutes, or until the mixture thickens and reduces in volume by half.
Once it’s thick, remove from heat and add the butter and vanilla (if using). Stir until the butter is fully melted and incorporated.
Allow the condensed milk to cool completely.
Pour into a clean container or airtight jar and store in the refrigerator. It will thicken further as it cools.
Note: Homemade condensed milk can be stored in the refrigerator for up to a week. Stir well before using, as it may separate slightly over time.
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