Open with the back of a knife, scrape the seeds out of the vanilla pod.
Add seeds to sugar in a container large enough to stir.
2 cups sugar
Work the seeds around into the sugar to incorporate. You can use your clean hands, or use gloves. (you can also pulse a few times in a food processor.)
Place the beans shells into sugar.
Store in a container or jar that is air tight.
Notes
Sugar can be used immediately but it is best to let the flavors infuse into the sugar for at least month. I've found it is best after 2 months.