Cut carrots into 3-inch lengths.
Simmer in small amount of boiling water for 5 minutes.
Drain; cut into thin sticks.
Combine sugar, vinegar, water, and mustard seed.
Tie cinnamon and cloves in cheesecloth bag; add to vinegar mixture.
Simmer 10 minutes.
Pour over carrots; cool.
Cover and refrigerate for 8 hours or overnight.
Remove cheesecloth bag and drain before serving.