This is a traditional German/Austrian holiday drink that is often enjoyed after a chilly day of skiing. I got this recipe from Else on Allrecipes.com and can't wait to try it. I modified it slightly based on its reviews.
In a saucepan, combine the water, sugar, and cinnamon stick. Bring to a boil, reduce heat, and simmer.
Cut the orange in half, and squeeze the juice into the simmering water. Push the cloves into the outside of the orange peel, and place peel in the simmering water. Continue simmering for 30 minutes, until thick and syrupy.
Pour in the wine, and heat until steaming but not simmering. Remove the clove-studded orange halves.
Serve hot in mugs or glasses that have been preheated in warm water (cold glasses will break.).