Sprinkle the gelatin over the cold water, and let it sit for at least 5 minutes while you prepare the rest of the ingredients.
Add the heavy cream, powdered sugar, and vanilla to the bowl of stand mixer with the whisk attachment. Beat the mixture on medium-low until it begins to thicken, but stop before there are soft peaks.
Put the gelatin mixture in the microwave for 5-10 seconds until it is liquid but not hot.
With the mixer on low, slowly drizzle the gelatin into the cream mixture.
Once all the gelatin has been added, increase the speed to medium high, and beat until stiff peaks are formed, about 2-3 minutes.
Remove the stabilized whipped cream from the bowl, and serve or store. You can use it in place of Cool Whip in any recipe.
Notes
Store leftovers in an airtight container in the fridge for 2 weeks, or in the freezer for 3 months. If freezing, place a layer of plastic against the top of the whipped cream before putting the lid on, to prevent freezer burn.
You can add flavors or food coloring to this recipe.