Place all spices into a medium saucepan over medium low heat. Toast spices for 3 minutes, while moving around the pan to toast evenly. Toasting spices brings out the flavor of each spice.
Using a peeler, or paring knife, remove four thin pieces of peel from the orange, avoiding as much of the pith as possible.
In the saucepan of spice, add the orange peel, the orange juice and the remaining ingredients. Increase heat to medium high. Bring to a boil, then reduce to a low simmer, while stirring to dissolve the sugar.
Simmer on low heat for approximately 20 minutes. Strain to remove the orange and spices.
Serve in mugs with a fresh orange slice from the second orange.
Notes
If you like, you can put a family-friendly twist on this classic and use non-alcoholic red wine instead.