Combine all ingredients in a medium saucepan and bring to a simmer over medium heat. Do not boil or you will boil off most of the alcohol. Once you reach a simmer, turn heat to low and keep simmering for another 15 minutes allowing the flavors to infuse.
Ladle into glasses and use any of the optional garnishes if you wish.
(You can easily double or triple this recipe for a crowd. You may need to add extra honey if you do.)