In a large saucepan, combine the sugar, honey, and 2 cups water and place over medium-high heat. Cut the vanilla bean in 1/2 lengthwise, then, using the back of the knife, scrape the vanilla seeds from the pod and add to the saucepan, along with the pod. Bring the mixture to a boil and cook for 4 or 5 minutes, until the sugar is dissolved and the mixture thickens. Remove from the heat and allow to cool.
Serve over ice with lemon wheels or wedges.
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