Pour the milk into a bowl, sprinkle gelatin over the milk. Let the mixture sit for 5 mins until the gelatin softens. Combine the cream and sugar in a saucepan over medium heat. Stir in the gelatin/milk mixture until gelatin dissolves (about 3 minutes). Add vanilla extract. Pour into ramekins or small cups: chill 4 hrs or overnight.

Reserve a few slices of strawberry for the garnish. Add the rest of the strawberries, vanilla extract, sugar, and water to a saucepan over medium heat. Crush the strawberries with a potato masher while they cook. Simmer for about10 mins, until the sugar has dissolved and thickened. Cool completely. Spoon strawberry sauce onto each panna cotta, pipe whipped cream on top then garnish with sliced strawberries