1. Peel orange and lemon in a circular motion in a large strip. Place peels in a warm, dry area to dry for 24 hours. 2. Stir honey, 1 cup water, sugar, caraway seeds, cloves, vanilla extract, cinnamon, and ground nutmeg together in a large pot; bring to a rolling boil, reduce heat to low, and simmer for 45 minutes. Add dried orange and lemon peels to honey mixture; continue to simmer for 15 minutes. 3. Remove from heat; discard fruit peels. Stir grain alcohol and remaining 2 1/2 cups water into honey mixture. Transfer mixture to a glass container and tightly cover with a lid. Place in a cool location out of direct sunlight and let set, gently swirling container every few days, for 1 week. 4. Strain mixture through double-layered cheesecloth to remove sediment. Pour liqueur into bottles or decanters and seal. ---------------------------------------------------------------------------
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Ingredients