Ethanol whose boiling point is 78 degree centigrade boils first. Water whose boiling point is 100 degree centigrade boils too.
The fractionating column is packed with glass beads to increase the surface area for condensation.
The vapour from the mixture rises up the fractionating column. At about 78 degree centigrade, water vapour condenses and drops back to the flask while ethanol vapour rises and is condensed in the lie-big condenser.
When the thermometer reading rises above 78 degree centigrade , most of the ethanol will have separated.
We distinguish the two products by the smell and burning i.e. ethanol is
flammable and water does not burn.