Take a small bowl, put in the gelatin powder with 2-3 tablespoons cold water. Keep aside for 5-10 minutes until it swells.
In the meantime, take a pan, pour in the milk, cream, and sugar together. Let it simmer and cook on a low flame. Do not bring this to a boil.
Once the sugar has dissolved, remove the pan from heat and pour in the vanilla extract. Let this mixture cool down.
Then pour the gelatin mixture into the milk mixture, stir well till the gelatin gets completely dissolved. Pour this into serving glasses and let refrigerate for 3-4 hours or overnight until it sets.
To make the sauce, wash the strawberries and drain them. Cut the strawberries into halves.
Take a small pan, put in the strawberries along with sugar and water. Let it simmer and cook, then remove from heat immediately.
Pour this sauce into a grinder and blend to make a smooth strawberry sauce. Then sieve this sauce through a strainer to remove the seeds. Let it cool to room temperature then refrigerate until it is ready to serve.
While serving pour the strawberry sauce over the panna cotta.
Serve instantly to enjoy for best taste.