Before beginning, place your mixing bowl and mixer beaters (or whisk attachment) in the freezer for 15-30 minutes. It is very helpful to have a cold bowl and beaters to achieve extra creamy texture.

In a small bowl, whisk together the cold water and the gelatin. Let sit for 2 minutes. It will begin to take on a gelatin consistency. Then, heat in the microwave for 10-15 seconds to warm and bring back to a liquid consistency. {This step is REALLY important to ensure the gelatin is smooth and not lumpy.) Set aside to cool.

To the chilled mixing bowl, add the cream, sugar/sugar substitute, and vanilla. Mix on low speed until the mixture becomes frothy and small bubbles begin to form. While mixture is still running, gradually add the gelatin mixture a few spoonfuls at a time. Once all the gelatin has been added, increase the speed to medium-high.

Mix on medium-high until the cream begins to visibly thicken, about 3-4 minutes. You'll know the Cool Whip is done mixing when the mixer stops and stiff peaks will hold their shape. (This is the time to STOP mixing. If you over-mix the cream, you will get lumpy whipped cream and butter will begin to form.)

Serve right away on desserts, cocktails, hot chocolate, or as an ingredient in fluff salads, or no bake desserts.