I am trying to get anhydrous diethyl ether. So, I am considering using a condensor to heat up diethyl ether and extract water. Would this method work?
No it would not work. Ether boils at a lower temperature than water. Plus, it forms an azeotrope with water: a composition of 98.7 % (by weight) ether boils at 34.2 °C and the vapor phase has identical composition as the liquid, meaning that distillation cannot remove the final 1.3% of the water (at atmospheric pressure).
The standard way to remove water is (i) first to use drying agents such as magnesium sulfate to remove most of the water, and then (ii) if needed, eliminating the final traces of water with small amounts of sodium (or potassium) metal.
Ether is notoriously difficult to remove all traces of water from. Don't even bother unless you have a means to store dry ether without its contacting air, from which it will extract humidity very rapidly. I would recommend using a desiccant such as calcium sulfate (drierite) or a molecular sieve, and let it stand for a few hours. You could then either decant or distil the dry ether, but distilling it with a desiccant filled drying tube on the receiver vent, or under an inert gas blanket, is a must.