Heat olive oil in a large skillet over medium-high heat. Add diced onion and cook until translucent, about 5 to 7 minutes. Add garlic and cook for another 1 minute.
Add whole tomatoes and use a wooden spoon to break them up. Stir in tomato paste and season with salt and pepper. Bring to a simmer.
Once simmering, pour in vodka, increase heat, and return to a simmer. Cook uncovered for 3 to 4 minutes to cook off the alcohol.
Stir in tomato sauce and balsamic vinegar. Reduce heat to low, cover, and simmer for about 20 minutes, stirring occasionally.
Meanwhile, bring a large pot of salted water to a boil and cook pasta according to package directions. Reserve ½ cup pasta water before draining.
Add parmesan cheese and fresh basil to a blender.
Once sauce has thickened, stir in the cream. Carefully pour the sauce into the blender with the cheese and basil. Blend until smooth.
Return sauce to the skillet, toss with cooked pasta, and thin with reserved pasta water if needed. Serve immediately.