To make your own vanilla sugar at home you will need:
I ordered my vanilla beans online from Beanilla. I would recommend them (especially if you want to make up a ton of this for gifts). They have great bulk prices and my beans arrived super fast (the shipping was also free!).
Cut open your vanilla beans lenthwise and scrape out all of the caviar (all the little bits inside the bean) with a small spoon. Add the caviar and the vanilla pods to your sugar and mix together very well. I generally use one vanilla bean for every 1-1.5 cups of sugar. Put your sugar and vanilla bean mixture into an air tight container and store in a cool, dry place (preferably out of direct light as well). Allow 2 weeks for the vanilla to properly flavor your sugar.
Add this to any recipe calling for sugar that you'd like to add a little extra vanilla flavor to. You may add more sugar and vanilla beans as necessary (if you use a vanilla bean in something else, put the pod into your sugar--add more sugar as space allows and stir well).
If vanilla sugar isn't your thing, you can try your hand at making your own vanilla extract instead!