• In a small saucepan, heat the heavy cream and granulated sugar over medium heat. Stir until the sugar dissolves and the mixture comes to a simmer.
• Remove the saucepan from heat and stir in the vanilla extract.
• In a separate bowl, sprinkle the gelatin powder over the cold water and let sit for 5 minutes.
• Once the gelatin has absorbed the water, whisk the mixture into the warm cream until well combined.
• Rinse the ramekins or the small glasses with cold water.
• Divide the mixture evenly among 4 ramekins or small glasses.
• Chill the Panna Cotta in the refrigerator for at least 4 hours, or until set.

To serve:

• Serve it within the ramekin or the glasses.
• OR, Invert the Panna Cotta onto a plate and serve with fresh berries or a drizzle of honey. (IF necessary, run a knife around the edge of each ramekin or glass to loosen the Panna Cotta).