In a very small saucepan sprinkle the gelatin over water and let stand for 1 minute to soften. Heat the gelatin mixture over low heat until the gelatin dissolves. Remove the pan from the heat.
Simmer the cream, the half and half, the sugar, and the vanilla extract. Make sure to stir and add in the gelatin.
Pour the mixture into single-serve (1/2 cup) ramekins, cover them with plastic wrap, and refrigerate until completely set (about 4 hours).
You may top the panna cotta with fresh berries, fresh fruit, fruit purées, chocolate or caramel sauces, or homemade jam. I love it with chocolate sauce, some strawberries with a little sugar, and a fresh mint leaf. Simply scrumptious!