In a small saucepan, combine the sugar and water. Bring the mixture to a boil over medium heat, stirring occasionally until the sugar is dissolved. When the mixture boils and the sugar is dissolved, remove the pan from the heat. Set it aside and let the syrup cool for about an hour. As the syrup cools, remove the lid from the juice and orange peel mixture. Prepare a fine-mesh strainer by lining it with cheesecloth and placing it over a clean bowl. Strain the juice through the cheesecloth to remove the orange peels and spices. Discard the peels and cloves. You can also use a disposable coffee filter to strain the mixture if you don't have cheesecloth. When the syrup has cooled to room temperature, pour it into the bowl with the strained orange-infused juice mixture. Add blue food coloring in five-drop increments, stirring with a long spoon after each addition. Continue adding color until your blue curacao reaches the desired shade of blue. Clean the mason jar that you used to infuse your orange base. Once all the ingredients have been combined, return the blue mixture to the mason jar. Cover the jar and return the mixture to its cool and dry spot. Leave the mixture to settle for another 24 hours. This final rest will allow all of the ingredients and flavors to properly marry and combine. After 24 hours, you can transfer the mixture to a pourable bottle. Clean an old glass bottle with soap and water to remove any residue. Rinse the bottle and let it air dry. Fit a funnel into the neck of the bottle and pour the blue curacao from the mason jar into the bottle. Once the blue curacao is in a pourable bottle with a tight-fitting lid, it's ready to enjoy. You can drink it on its own, on ice, or in your favorite drinks and cocktails. Screw on the lid tightly and store leftovers in the refrigerator for about two months.

Summary:
Make a simple syrup. Strain the juice. Combine the juice, syrup, and food coloring. Let the mixture rest for a day. Transfer to a bottle. Serve and enjoy!