In mixer bowl, pour in the warm water and the meringue powder. Mix it with a whisk by hand until it is frothy and thickened…about 30 seconds.
Add in caramel flavoring and whisk for a few seconds.
Sift the icing sugar. Pour all the icing sugar into the mixer bowl.
Using the paddle attachment on the LOWEST speed, mix slowly for a full 10 minutes. Icing will get thick and creamy.
Cover the bowl with a dampened tea-towel to prevent crusting and drying.
Cover the bowl with a dampened tea-towel to prevent crusting and drying.Tint with food colorings or thin the icing with small amounts of warm water to reach the desired consistency.