Place the white granulated sugar in a food processor.
With a paring knife, slit the vanilla bean pod down the center lengthwise, then scrape the vanilla seeds using the back of the knife and place the seeds on top of the sugar. Repeat until all the seeds have been scraped. Set the vanilla bean pod aside until needed.
Pulse the mixture a few times until all clumps of seeds are broken up and blended.
Pour vanilla sugar into a glass jar. Submerge the vanilla bean pod in the sugar and seal with an airtight lid. Side Note: If you store in more than one jar make sure to cut the bean pod and evenly divide it between jars.
Store sealed in an airtight container in a cool dry place until needed. Side Note: You can use the vanilla sugar right away but for optimal flavor, you should wait 1-2 weeks.