Place the cranberries in a colander and rinse well.
In a large sauce pan, combine water, sugar, and orange juice. Bring to a boil over medium-high heat.
Reduce the heat to medium. Add cranberries and the remaining ingredients, continue cooking for 10 minutes or until most of the cranberries have burst. Stirring occasionally.
For a stronger vanilla flavor, you can add the vanilla after you finish cooking the sauce. Just make sure to reduce the amount of vanilla from 1 teaspoon to ½ tsp.