Add the nuts and oats and stir for 5-8 minutes or until they are toasted.
Turn the heat to medium-low. Add the sugar and vanilla to the pan. Stir until it melts and coats the nuts and oats. Watch carefully or it can burn.
Transfer to a large bowl. Let cool, mixing occasionally. I let this granola cool in a bowl so any unmelted sugar will melt and so some clumps will form.