In a large pot bring the water and honey to a boil. Remove the foam from the top with a shallow spoon. Boil for 5 minutes. (depending on how hard you boil, you will end up with a weaker or stronger drink)
Add the star anise, cloves, nutmeg, cinnamon, vanilla, orange zest and peppercorns. Reduce heat, cover and boil for 10 minutes.
Raise the heat so it returns from a boil then remove from the let it and let sit covered for about 30 minutes.
Strain out all the spices and bring the liquid back to almost boiling. (I just use a fine mesh strainer, but if you have time and don't like any solids in your drink use cheese cloth or coffee filters.)
Carefully add the liquor, then remove from the heat and allow to cool. Bottle.
Let sit for at least a week. (Sometimes I will put the cinnamon sticks or vanilla bean in the bottle, adds to the look and the flavor.)