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1. In a 4-quart saucepan or Dutch oven combine cranberry juice, the water, and lemon juice.
2. For spice bag, place lemon peel, the 3 inches stick cinnamon, and the cloves in the center of a double-thick 6-inch square of 100 percent-cotton cheesecloth. Bring the corners together; tie with clean kitchen string. Add to juice mixture.
3. Bring just to boiling; reduce heat. Cover and simmer for 10 minutes. Discard spice bag. Stir bourbon into juice mixture. If desired, garnish individual servings with lemon slices and additional stick cinnamon. Makes 12 (scant 6-ounce) servings