Vanilla is a tree growing spice.
There are three ways to farm Vanilla. The first way is to find a naturally generated a Vanilla tree and use it to farm Vanilla by waiting for the Vanilla Bean to ripen, then harvesting. The second way is to combine three Vanilla Beans with a sapling and plant it.The last way is to purchase a Vanilla Sapling from The Market.
When ripe, they break with a single punch and an unripe bean reappears when the Vanilla Bean drops.
Smelt Vanilla Beans in a Furnace to get Vanilla for crafting.