Use a knife or scissors to pierce the "eye" on top of the coconut and drain out its water.
Add sugar to a heated pan over medium heat.
When the sugar begins to melt, use a wooden spoon to spread the sugar to avoid clumping.
Once the sugar has melted, gently shake the pan in a circular motion.
From this point onward, do not stir the sugar with the spoon, as doing so will cause it to solidify.
When the sugar turns to a darker brown, reduce the heat to low.
Once the sugar comes to a rapid simmer and starts bubbling, gently shake the pan in a circular motion.
Turn off the heat.
Keep on shaking the pan gently to cool the sugar.
Add the coconut water spoon by spoon to the perimeter of the pan to prevent splattering.
Place the pan back onto the stovetop over low heat and gradually add in all of the coconut water.
Cook for about 1 minute. Gently stir the mixture.
Remove from heat, and allow the sauce to cool completely.
Transfer it to a glass jar.