I have been making my own vanilla extract for the past year. I think the flavor is so much better then the ones bought at the store.
I use regular vodka and a bunch of good vanilla beans. I split the beans open and scrap out some of the center into the vodka as well. I have a new half gallon jug going now, it should be ready in another month and I just started another smaller batch (quart) size and did half vodka and half brandy which should be ready by Dec. I leave mine sit in dark cool place and give the bottles a good shake every couple days.
I still have some left from my last batch, once that is done I will take the vanill beans out and let them air out for a little and then place them in a jar and pour sugar over top. Shake every couple days and in a few weeks you will vanill suagr. Great to use in pancake batter, cookies, coffee, etc for an added vanilla flavor.