Take Milk, Cream and Vanilla essence in a Saucepan and cook on medium low flame till the mixture comes to a boil.
Add Sugar to the Creamy milk and stir continuously to dissolve the Sugar. Switch the flame off.
In a saucepan take Gelatin along with 5 tablespoon water and cook it on the medium flame for 1 minute or till Gelatin dissolves completely in water and switches the flame off.
Now add the Gelatin water to Milk and mix properly using a spoon until Gelatin mixes properly with the milk.
Pour the mixture into ramekins or in glasses and let it cool in room temperature.
Now refrigerate Panna Cotta overnight or for 4-6 hours or till it sets completely.