1. Heat 1 cup sugar in 5-qt Dutch oven over medium heat, stirring occasionally, until melted.
2. Cook, stirring constantly, until sugar is completely dissolved.
3. Carefully add butter, 1 additional cup of sugar and the water. (Mixture will harden) Continue cooking, stirring constantly with a wooden spoon, until the sugar is totally dissolved.
4. Heat to boiling; reduce heat, add vanilla extract. Simmer 5 minutes.
5. Mix Bisquick and milk until soft dough/batter forms. Drop by rounded tablespoonfuls into Boiling syrup. Cover tightly; reduce heat. Cook over low simmering heat for 15 minutes. Do Not Remove Cover while cooking.
6. Serve warm and, if desired, with whipped cream.
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