Put anise seed and water in a pot and bring to a boil, then turn off the heat and set it aside. Stir in sugar and honey and keep stirring until dissolved.
Preheat oven to 350 degrees.
Sift together the dry ingredients, then stir in the candied peel. Add the honey mixture and stir until smooth. Turn into 2 greased loaf pans (8-1/2" x 4-1/2") and bake until done, about one hour. (Because this gives a tougher crust than most cakes, I take them out when the cakes has pulled away from the sides of the pan.
Let cool completely before cutting. It's better the next day, and will keep surprisingly well if wrapped in plastic wrap and kept in an air-tight tin away from heat.
I bake about a dozen miniature loaves at Hannukah/Christmas time for gifts. This is every bit as delicious as the pain d'epice I enjoyed in France as a kid.
(Note: I could slice this up, dry it a day, and toast it for the kids as toddlers; it made a fairly good teething toast.)