Preheat oven to 375. Butter a 9 inch cake pan and place a piece of parchment on the bottom. Butter the parchment also.

Scrape the seeds out of the vanilla bean and place the seeds in a food processor with the granulated sugar. Pulse several times until the vanilla bean specks are evenly distributed throughout the sugar. Pour the vanilla sugar into a bowl and set it aside.

Put the fresh cranberries in the food processor along with half a cup of the vanilla sugar. Pulse several times until the cranberries are coarsely chopped but not pureed.

In a medium bowl, combine flour, baking powder and salt.

Beat 1 stick of butter with 1 cup of vanilla sugar for several minutes until light and fluffy. Add the eggs and vanilla extract, beating until combined. Alternate adding in the flour mixture along with the milk, beginning and ending with the flour. Do not overmix, stop as soon as the ingredients are incorporated.

Pour approximately half the batter into the prepared cake pan (batter will be thick). Spoon all of the cranberries on top, leaving a ½ inch border around the edge. Top the cranberries with the remaining cake batter, being sure to cover the cranberries completely. Because this batter is so thick, I find it easiest to add the second layer of batter by dolloping spoonfuls on top of the cranberries and then smearing them together with my fingertips. It's messy but it works!

For the topping: combine the remaining ¼ cup of vanilla sugar with 1 tablespoon of flour and 1 tablespoon of softened butter. Mix with your fingertips, until crumbly. Sprinkle the topping evenly over the cake.

Bake the cake for approximately 30-35 minutes. A toothpick inserted into the center of the cake should come out without cake batter on it. Cool the cake completely and then carefully turn it out onto a serving platter. Dust the top with powdered sugar if desired