Chill bowl and whisk/beaters in fridge for 5-10 minutes.
Place cold water in a microwave safe dish (preferably one with a pourable spout) and sprinkle the gelatin over the water. Whisk/stir together and set aside for 5 minutes to absorb and solidify.
Place heavy cream, powdered sugar and vanilla extract in the bowl of a stand mixer.
Using the whisk attachment, beat until mixture is thickened, but not quite soft peaks.
Nuke gelatin in microwave for 5-10 seconds to melt it. Whisk/stir briefly until smooth. Make sure it’s warm, but not too hot. Drizzle the gelatin into the cream while the mixer is running on low speed. (It’s important to do this slowly to avoid lumps.)
Slowly increase speed to medium-high and whip until stiff peaks form. (Just until it starts to look thick and leaves trails from the whisk. Do not over-mix or it will curdle and turn into butter. Keep a close eye on it.)
If using to pipe or decorate cakes/cupcakes, use stabilized whipped cream immediately for best results. Store in an airtight container in the fridge for up to 4-5 days.
Video
Notes
Yield: 3 ¼ cups which is equal to one 8-oz tub of Whipped Topping. It's enough frosting to cover a two-layer 8 or 9-inch cake or generously frost 12 cupcakes.
Find unflavored gelatin in the aisle with the Jello and pudding mixes. It usually comes in a box of four packets.
When nuking the gelatin, you want it warm enough that it doesn't solidify when it hits the cold cream. But not so hot that it deflates it. Gelatin melts rather quickly and will be clear when ready. It should take no more than 5-10 seconds in the microwave to liquify it. Do not overheat.