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Pour the Red Wine into the large pot, add sugar, cinnamon sticks, cloves, and star anise. Slice the lemons and oranges, and add to the red wine. Warm until steaming, but do not boil!
Put a German Sugar Loaf (Zuckerhut)* on a metal rack/screen or clamped in metal tongs above the warm punch. Slowly pour high-proof rum over the sugar loaf or sugar cubes and let it soak for a minute. Light the sugar loaf and let the flaming sugar caramelize and drip into the punch mix. Add rum as is needed to keep the flame going until all the sugar is gone.
Turn off the lights during this process to enjoy the blue flames.
Serve the punch hot in mugs or hot-tea glasses.