Source : Webster's Revised Unabridged Dictionary (1913)

Caramel \Car"a*mel\, n. [F. caramel (cf. Sp. caramelo), LL.
   canna mellis, cannamella, canamella, calamellus mellitus,
   sugar cane, from or confused with L. canna reed + mel,
   mellis, honey. See {Cane}.]
   1. (Chem.) Burnt sugar; a brown or black porous substance
      obtained by heating sugar. It is soluble in water, and is
      used for coloring spirits, gravies, etc.

   2. A kind of confectionery, usually a small cube or square of
      tenacious paste, or candy, of varying composition and
      flavor.

Source : WordNet®

caramel
     n 1: firm chewy candy made from caramelized sugar and butter and
          milk
     2: burnt sugar; used to color and flavor food [syn: {caramelized
        sugar}]
     3: a medium to dark tan color [syn: {yellowish brown}, {raw
        sienna}, {buff}, {caramel brown}]

caramel
     adj : having the color of caramel; a moderate yellow-brown [syn: {caramel
           brown}]