Pour in the water and bring to a rolling boil over medium-high heat, stirring frequently.
Reduce to medium-low heat and cook at a low boil until the cranberries begin to burst, stirring constantly.
Reduce the heat to low and stir in the bourbon and vanilla extract. Simmer until the sauce thickens.
Cool slightly before serving.
Notes
Make sure to stir your bourbon cranberry sauce constantly to dissolve the sugar and keep the sauce from getting grainy.
You can make this vanilla bourbon cranberry sauce up to 1 week in advance! Just store it in an airtight container in the fridge.
Add complexity to this boozy cranberry sauce with mix-ins like orange juice (replace half of the water with it), orange zest for extra citrus flavor, chopped pecans for crunch, or cinnamon sticks for warmth.