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1. Remove the rind's outer green skin and the inner pink flesh until only the lightest part remains. Cut it into ˝-inch cubes. (It should make about 10 cups.)
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2. Cover the watermelon rind with cold water in a 4- or 5-quart saucepan. Bring the water to a boil, then pour it off and repeat the boiling, beginning with more cold water. Repeat once again, the third time simmering for 20 minutes before draining the rind in a sieve.
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3. Return the rind to the pan and cover it with the granulated sugar and 1˝ cups of water. Add the lemon slices and the vanilla bean. Shaking the pan frequently, cook over medium heat until the sugar has melted.
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4. Then simmer uncovered for about 2 hours, or until the syrup registers 234°F on a candy thermometer or forms a soft ball when a little of it is dropped into cold water.
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5. Watermelon "slatko" will keep for as long as a year when it is refrigerated in a glass container. Serve it either in a small dish as a dessert or as you would serve preserves.
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6. In Serbia, "slatko" is served very ceremoniously. The bowl containing it is placed on a tray, along with a glass of water and a silver spoon for each guest.
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