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Shuna Lydon

Shuna is a pastry chef in New York City and author of the acclaimed blog Eggbeater.

added about 1 year ago

I have only worked with licorice a little, and it was in the form of a liquid, thicker than honey.
But adding flavors to caramel is mostly pretty easy. It's best to add your flavorings once the caramel is made, and season to taste. I'm going to guess that the extract will serve you better here, as powders are often difficult to dissolve in thick (dairy) caramels.
My suggestion is this:
Pour a small amount of caramel into a bowl and whisk licorice flavoring of choice until it tastes right. If you use a scale it will be easier to set down a recipe, and see the ratio.