Vanilla

I've found health food shops to be the best source of vanilla pods (Vanilla Beans). The fatter the better.  They dried.
Store vanilla pods in kilner Jars with caster sugar and pop them in the hot press. This makes vanilla sugar.
Vanilla sugar is a scented sugar that can be used anywhere instead of vanilla essence or extract and sugar. It makes a nice present for a foodie friend.  In mainland Europe where a recipe calls for a sachet of vanilla sugar they are referring to an 8g Sachet of Vanilla Sugar which can be replaced with 1tsp of Vanilla Extract and a tsp of caster sugar.
To remove the seeds - Split the vanilla pod down the length of the bean. Open out the pod and scrape the insides out. The Vanilla Seeds themselves will be clumped together as a slightly sticky group of tiny little black dots.
Vanilla essence is an artificial flavouring
Vanilla extract is different to vanilla essence in that its a natural flavouring and you will notice the difference because the scent and flavour is different. You will also be able to see the seed in the extract.