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Step 1
Place the water in a small bowl, and sprinkle the gelatin evenly over the surface of the water. Set aside to hydrate.
Step 2
Combine the milk, sugar, and vanilla bean with seeds or vanilla extract in a medium saucepan over medium-low heat, stirring frequently. When the milk mixture is hot to the touch (about 140°F), gently whisk in the hydrated gelatin until fully dissolved. Stir in the cream. Remove from the heat and strain through a fine mesh sieve.
Step 3
Divide the mixture among 6 (6-ounce) ramekins or small glasses. (there should be about 4 ounces per dish.) Place in the fridge to chill for at least 6 hours or overnight. (Cover loosely with plastic wrap, if desired.)
Step 4
Serve the panna cotta out of the ramekin or invert it by dipping the ramekin in a bowl of hot water for about 3 seconds. Run a thin, sharp knife around the edge of the panna cotta. Place a small plate on top and flip the ramekin and plate over. Wiggle the ramekin to release the panna cotta. If it doesn’t come loose, dip in hot water again. Serve with berries or as desired.