Dulce de leche means candy of milk or milk jelly in Spanish. It is a rich and decadent sauce similar in flavor to caramel. Unlike caramel, however, which is made by heating sugar, dulce de leche is prepared by heating sweetened milk. Dulce de leche is especially common in the desserts of various South American countries and Mexico. Dulce de leche is delectable spooned into coffee, warmed and drizzled over bananas or ice cream or used in baking.