In a saucepan over low heat, melt the granulated sugar until it turns into a golden-brown caramel. Add the butter and stir until smooth.
Slowly pour in the heavy cream to the caramel, stirring constantly. Let it cool to room temperature.
Soak the gelatin in the water, then heat over low heat until completely dissolved. Add it to the caramel cream and mix thoroughly.
Place the sponge cake base in a cake pan and pour the caramel cream over it. Spread the top evenly.
In a clean bowl, whip the egg whites with the powdered sugar until stiff, glossy peaks form.
Spoon the meringue onto the set caramel layer. Using a kitchen torch, carefully caramelize the surface of the meringue.
Refrigerate the cake for at least 2 hours to allow all layers to set completely. Serve chilled!
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