Ethanol and water form a eutectic (lowest-boiling-point) mixture that is approximately 95% ethanol to the best of my recollection. Continued distillation will yield only more of the eutectic mixture. It is impossible to remove the remaining 5% of the water by distillation alone. But it can be removed by other methods.
These other methods include: removing the water with a desiccant, such as molecular sieves, or distillation after adding agents that retain either the water or the ethanol selectively. Benzene is one such possibility.
I agree. In my opinion the best method is to add a third component (e.g. ethylene glycol or an inorganic salt) that increases the volatility of ethanol and breaks the azeotrope. It requires a second tower to separate the third component from water.
Alternately, one can run two columns set at two different pressures. In the high.P tower one gets pure water and the 95% azeotrope. Then he can feed the aeotrope to another tower working at low pressure, separating a, say, 98% azeotrope (to be recycled to the first tower), and pure ethanol from the bottom. It does not require a third component but its consumes a lot of energy.
In that case (azeotropic distillation) ethanol and cyclohexane are in the top product, and pure water from bottom. The condensed distillate splits into cyclohexane (which is recycled) and almost pure ethanol.
For somewhat related RG discussions that you may find useful to check: https://www.researchgate.net/post/How_to_separate_acetonewater_ethanolwater_and_methanolwater_solution https://www.researchgate.net/post/How_I_can_separate_the_azeotropic_mixture_of_water-ethanol-benzene https://www.researchgate.net/post/What_is_the_most_appropriate_method_to_dry_ethanol