Heat and Dissolve: Place the water, applesauce, spices and monk fruit in a saucepan over medium heat and stir the mixture continuously until the sweetener has completely dissolved, and the ingredients are well combined. This should take about 5 minutes.
Add Apples: Once the mixture is smooth, add the apple chunks. Reduce the heat to low and let the mixture simmer for about 15-20 minutes, stirring occasionally. The apples should soften and start to break down.
Mash the Apples: Use a potato masher or the back of a spoon to mash the apples into the sauce, breaking them down further to create a smoother texture. Continue to cook the mixture over low heat until it thickens to your desired syrup consistency. This may take ANOTHER 10 minutes.
Thicken with Xanthan Gum: If using xanthan gum, sprinkle ⅛ teaspoon of it into the mixture while whisking vigorously to prevent clumping. This will help thicken the syrup and stabilize it.
Add Vanilla Extract: After the syrup has simmered, remove it from the heat and stir in 2 teaspoons of vanilla extract.
Strain the Mixture: place a fine-mesh strainer or cheesecloth over a large bowl or another saucepan.Pour the apple mixture through the strainer or cheesecloth, allowing the liquid to drain into the bowl. Use the back of a spoon to press down on the solids to extract as much syrup as possible.
Cool and Store: Let the syrup cool to room temperature. Once cooled, transfer it to a clean, airtight container or jar. Store the syrup in the refrigerator for up to two weeks. Shake well before each use, as some separation may occur.