In a small heavy skillet on medium heat, caramelize the sugar. Combine sugar and water in the pan, stirring until it is hard to stir with the consistency of wet sand.
At this point, over medium heat, bring to a boil. Do not stir. Remove the pan from the heat once the sugar is melted (be careful, it will continue to cook after removing it from the heat).
In the meantime, cook the 2 cups sugar and milk in a 2-3 quart heavy saucepan stirring frequently. Add the caramelized sugar slowly to the mixture and then the pecans.
Cook on medium heat until soft ball stage is reached. Soft ball stage has a temperature between 234 and 238 degrees. Without a candy thermometer you can judge the stage when the candy mixture dropped in cold water has a soft texture and will stick together in a ball when rolled between your fingers.
Add the vanilla and butter but DO NOT STIR.
When the mixture cools, beat until the mixture starts to hold it shape. Drop into mounds on waxed paper. Makes about 40 small pralines. Store in an airtight container.
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