Dissolve gelatin in 2 tbsp cold water and let it swell for about 5 to 10 minutes. 

In a medium saucepan bring the cream, milk and sugar to a simmer over medium-low heat  (Do not boil). When sugar has dissolved remove from heat and add vanilla extract. Let cool for 5 minutes before adding the gelatin.

Add gelatin in the milk mixture and stir until the gelatin has completely dissolved. Pour it in the serving glasses (I've used 5 oz – 150 ml capacity glasses) or ramekins and refrigerate until it sets, for about 4 hrs or better overnight.

To prepare the sauce wash the strawberries, drain well and remove leaves. Cut strawberries in quarters. In a small saucepan put the strawberries, sugar and water. Bring to a simmer and remove from heat immediately. 

Pour into the bowl of a blender or food processor and  blend the mixture to make a smooth sauce. Pass through a strainer to remove the seeds out of the sauce. Cover and let it cool to room temperature then refrigerate until ready to serve.

Before serving pour the strawberry sauce over the panna cotta and serve.