1. Wash and dry the orange. Peel the orange using a vegetable peeler, removing the zest. Cut the peeled orange in slices.
2. Remove the vanilla seeds from the bean. In a saucepan, combine the sugar and water. Add the vanilla pod and orange peel.
3. Bring to a boil and reduce to a simmer for 10 minutes.
4. Add the rest of the ingredients and allow to simmer on a low heat for a minimum of 30 minutes.
5. Serve the wine directly into the glass and decorate with the orange slices.
Note: The mulled wine could be made in advance and warmed up before serving.