In a large jar, combine the coarsely ground coffee with the water.

Seal the jar tightly and let it sit at room temperature for 12 to 24 hours.

After steeping, strain the coffee using a fine mesh strainer or coffee filter.

In a small saucepan, combine the granulated sugar and 1 cup of water over medium heat, stirring until the sugar fully dissolves.

Once the syrup has cooled, combine it with the strained coffee.

Stir in the vodka and vanilla extract until well combined.

Using a funnel, pour the liqueur into clean bottles and seal them tightly.

For best flavor, let the liqueur sit for at least a week before using.