Soak the gelatin sheets in cold water to soften. Meanwhile, grate the apples and sprinkle with a little cinnamon.
In a medium saucepan, combine the heavy cream, milk, sugar, and vanilla. Heat over low heat, stirring until the sugar is completely dissolved, but do not bring to a boil.
Add the grated apple and cinnamon to the cream mixture. Simmer for another 2-3 minutes to allow the flavors to meld.
Remove the saucepan from the heat and stir in the softened gelatin sheets until completely dissolved.
Strain the mixture through a fine-mesh sieve to ensure a smooth panna cotta. Pour into glasses or molds.
Let the panna cotta cool to room temperature, then refrigerate for at least 4 hours, or preferably overnight, to set completely.
Before serving, garnish with thin apple slices and a pinch of cinnamon.
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