1. Pour the vodka into a lidded glass container. Add the chopped nuts and steep for about two weeks, shaking gently every day
2. After two weeks, strain the vodka, pressing the nuts with a wooden spoon or spatula to release their flavour. Discard the nuts. Strain the liquid again through a coffee filter or fine muslin.
3. Bring the sugar and water to a boil in a small pan and simmer for five minutes until syrupy. Cool, then add the vanilla pod (bash it first with the handle of your knife to release the flavour); if you are dividing the syrup between two half-bottles, cut the vanilla pod in half.
4. Add the syrup and vanilla to the hazelnut liqueur. Transfer to a bottle or bottles and store for four weeks before drinking, turning occasionally.
For more information on home-made flavoured alcohol, read Julia Watson's article Make your own boozy Christmas gifts.