Pour the water into a small saucepan and place it on the stovetop. Add the cinnamon sticks and whole cloves if using.
Heat the mixture over medium heat until it begins to simmer. Avoid keeping it at a rapid boil, as the water will evaporate too quickly.
Stir in the vanilla extract once the water is gently simmering. The vanilla adds a soft, sweet fragrance that complements the cinnamon.
Reduce the heat to low and allow the mixture to gently simmer uncovered. Keep the heat low enough that the water is steaming without aggressively bubbling.
Continue simmering for 1–2 hours, checking the pot regularly. Add more water whenever the level gets low so the pan never becomes dry and If you want the fragrance to continue longer, add another cup or two of water and continue simmering over low heat. You can adjust the amount of cinnamon or vanilla to suit your preference.
Turn off the heat when you’re finished or whenever you leave the kitchen. Allow the mixture to cool before disposing of it or storing it for another use.