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In a saucepan, combine Combine all ingredients (excluding vanilla) over low heat. When the rhubarb starts to soften, but before it falls apart, about 5 minutes, use a slotted spoon to transfer it to a bowl.
Cook down the remaining liquid in the pan until it thickens and turns syrupy, about 5 minutes longer. (This condenses and intensifies the rhubarb flavor.) Add the syrup to the bowl with the rhubarb along with the vanilla and let cool. Compote will keep for at least a week in the fridge.