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Combine sugar and water in a small bowl and mix well. Microwave for 30 seconds or until the mixture is fully combined and no sugar is visible.
Allow simple syrup to come to room temperature before using.
In a large cup or a medium-sized pitcher, combine milk, matcha powder, simple syrup, and vanilla extract. Mix well using a large spoon until the powder is fully combined. This will turn the beverage a light green color.
Pour the mixture into a glass filled with ice.