Use about 5-8 whole vanilla beans...add to approx. 32 oz. vodka (Absolut or Skyy is an appropriate quality) into a glass bottle with a lid....wait 6 weeks shaking the bottle a few times a week. Ta-da!
Delicious vanilla extract, and the best part is, when the bottle gets low, just top it off with vodka and give it a few weeks, and it's ready to go again!
Vanilla Bean Sources - Costco (10 beans; approx $10)
Beanilla.com (prices vary)
Bottle - I used the bottle shown above from Ikea. Slom Bottle $2.99