In a medium saucepan, make a simple syrup by combining the sugar and water and bring to a boil, stirring until sugar is dissolved. Boil one minute. Remove from heat and cool.
In the bowl of a food processor, puree the cranberries.
In a large measuring cup, combine the vanilla vodka with the simple syrup. Stir to combine and then add cranberry puree. Stir well. Cover and refrigerate for 2 - 3 weeks, stirring every so often.
Using a fine mesh strainer and ladle, strain mixture into one or two large measuring cups. Once mixture is strained, transfer to clean, decorative bottles. Refrigerate or freeze until ready to use or gift.