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In a small saucepan over medium heat, whisk together the water and granulated sugar for the vanilla syrup. Leave it alone as it heats up and the sugar dissolves.
Once the simple syrup comes to a simmer, turn off the heat and add the vanilla extract or vanilla bean paste. Set aside to use for later.
Heat the milk in a small saucepan or in the microwave in a microwave-safe bowl or measuring cup until it's 185 degrees F (85 degrees C).
Pour ¼ cup (2 ounces) of the hot milk into a large latte mug, add the matcha powder and use the milk frother to whip the matcha powder into the milk until it's smooth. We don't want any lumps!
Add ½ of the vanilla syrup to the matcha milk.
Use the milk frother to whip up the rest of the hot milk until it is very foamy and frothy, for about 2 minutes.
Pour the foamy milk into the mug with the matcha and vanilla syrup. Taste for sweetness and add vanilla syrup as needed.
Serve hot!