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Put the granulated sugar and water in a saucepan.
Slice open a vanilla bean in half lengthwise. Spread open the vanilla bean pod and use your knife to scrape out the vanilla bean seeds. Add the seeds and the vanilla bean pod to the saucepan and stir.
Bring to a boil and stir for 1-2 minutes until the sugar is dissolved.
Remove from heat and allow the syrup to cool. Pour into a container. Allow the vanilla bean syrup to cool completely, cover, and store in the fridge for about one week or possibly up to two weeks.