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Ingredients:
1 cup (8 oz.) 80 proof (40%) or higher alcohol
5 Grade B vanilla beans
Directions:
Cut vanilla beans in half so they are shortened. There should be 10 halves.
Place all halves of the beans into the 1 cup (8 oz.) of alcohol.
Let sit in a dark, cool cabinet for 3 months. Shake every couple days.

I recommend using Grade B vanilla beans for making vanilla extract.
What is the difference between grade A and grade B vanilla beans?
Grade A beans are the beans you want to use for baking. They have more moisture and are more pliable which makes it easier to split and scrape the seeds out.
Grade B beans are used for extracts. They have less moisture in them which concentrates the vanilla flavor.
You have to soak the beans in alcohol. What kind of alcohol should you use? Any alcohol that is 70 proof (35% alcohol) is acceptable but I prefer to stick with just a bit higher than that. My preferred alcohol is Rum and Bourbon. Rum will give you a nice smooth, strong vanilla flavored extract. Bourbon will give you a really rich vanilla enhanced bourbon flavor which is really nice in spiced cakes or cookies. Both extracts shine in homemade whipped cream.
How to store your extract?
This answer depends on how much you make at once. I usually buy the large 1.75 L bottles and place 35 beans in it. I use lots of vanilla and this gives me plenty to work with. Some other options include a flip top bottle or a mason jar. I would recommend using a plastic lid instead of the metal ones for the mason jar as the metal ones can get stuck and start to erode because of the alcohol.
Be sure to label your extract! I always think I will remember when I made it, but I never cease to forget. Place the extract into a dark cabinet for 3 months or longer. The longer it sits, the stronger the flavor. I have read you can use it after 6 weeks but I prefer waiting a minimum of 3 months for the flavor. Shake every few days. I have forgotten and not shaken it for weeks and it still turned out well. Once ready to use, you can use it just like normal vanilla from the store. You can strain the vanilla away from the beans or leave them in there.
Important! Be sure you keep the vanilla beans submerged. This will help prevent mold. Do not rinse the beans, this will introduce water to the alcohol and that will give mold a greater change of growing.
What is the shelf life?
I have not scientifically studied it, however, it should be about the same as the shelf life of the alcohol. I generally prefer to use it within 3 to 5 years of making it.
