Combine sugar and water in a medium saucepan; cook over medium heat 5 minutes or until sugar dissolves, stirring constantly. Remove from heat, and cool completely.

Place cranberries in a food processor; process 2 minutes or until finely chopped. Combine sugar mixture and cranberries in a large bowl; stir in vodka.

Pour the vodka mixture into clean jars; secure with lids. Let stand 3 weeks in a cool, dark place, shaking every other day.

Strain the cranberry mixture through a cheesecloth-lined sieve into a bowl, and discard solids. Carefully pour liqueur into clean bottles or jars.

Liqueur can be stored refrigerated or at room temperature for up to a year.

Cooks variation: Add the zest of two oranges to the cranberry and proceed with the recipe.