In a large saucepan, combine sugar and water. Cook and stir over medium heat until sugar is dissolved; remove from the heat. Stir in milk and extract. Transfer to a bowl; cool to room temperature. Cover and refrigerate until chilled.
Just before serving, transfer milk mixture to a punch bowl. Stir in the food coloring and soda. Top with scoops of ice cream.
Test Kitchen Tips
Keep your ice cream scoops small so they are easy to ladle into punch cups or glasses.