Place honey, water, cinnamon sticks and cloves in a sauce pan.

Wrap a nutmeg in a dish towel and whack with the back of a knife and pick out a piece about a quarter the size of the whole nutmeg and place in the pan.

Add the vanilla bean and the orange peel and bring to a boil.

Remove from heat and spoon off any foam then bring to a boil again, cover and simmer on low for 30 minutes.

Let sit for 30 minutes off heat.

Remove lid, bring back to a boil and add vodka off heat.

Stir and pour through a coffee filter or cheese cloth into a clean sterilized bottle and let cool. Discard solids.

Cap the bottle top and let sit in a cool dark place for one week.

After a week, siphon off the liquid and discard the sediment that sinks to the bottom.

Serve cold, warm or hot.